My brother is dealing in works contract business . He is getting bills after deducting the W C Tax . Anybody can tell me the provisions and what he has to do now , whether he can get refunded back it ? He is filed his service tax returnnn as well as Income tax return. Please help me .
2 Replies
sharad Sadanand Utekar
(Proprietor)
(24 Points)
Replied 30 June 2012
Dear
First of all must clear that W.C is deducted if the contarct carry on contract on labour & materil, if he have VAT No., it submit to the company, I think so co. should not deduct the W.C. & If he deduct W.C. you take set by filling VAT Return. Also File Serivce Tax Return Half yearly. If the service tax paid or deducted by party is more than service tax payable u can claim for set also. for more information refer concerned act.
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 02 July 2012
The company will deduct WCT whether or not the Contractor is registered under the VAT Act. For registerd dealers the rate of deduction is lower i.e 2% of the Contract Value, whereas for the unregistered Contractor the rate of deduction is 4%. Hence you need to register under VAT Act, and claim a refund if no tax is payable by you on the said transactions.
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