Works contract tax/works contract service

This query is : Resolved

Harsha.H (Querist)
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03 September 2012 Dear Experts,

there's lot of confusion between works contract tax and works contract service.

kindly explain where is works contract tax is applicable and where is works contract service is applicable?

where 4.8% v/s 12.36% ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 September 2012 Work contract tax is the normal VAT(sales tax) and Work contract service is the tax levied under Service tax.

In case a contract having both material & labour. subject to some condition material part will attract WCT and labour part will attracr Work contract service tax

CA NIKHIL OZA

CA NIKHIL OZA (Expert)
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04 September 2012 service in which supply of material is also included on which VAT is also Applicable with service tax on service portion included in it..its the case of WCT, as such s.tax @ 4.8% would b Applicable..

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