shivaji (job) (424 Points)
04 August 2010Hello,
i want to know
what is WCT?
What is is TDS on contract?
WCT is like VAT it is added to the value of goods in invoice by the manufacturer and TDS is deducted by the customer at the time of making payment for goods purched.
is it correct ?
please tell me about WCT
thanking you
Harpreet
(* * * * * *)
(1670 Points)
Replied 04 August 2010
Dear please find enclosed herewith the attached file for WCT Chapter.
Harpreet
(* * * * * *)
(1670 Points)
Replied 04 August 2010
Please find enclosed herewith the attached file for FAQ on WCT.
CA,CS, ICWA Inter MANOJ KEDIA
(Working With Educomp)
(99 Points)
Replied 04 August 2010
as per my knowledge
WCT is like vat only
but direct Vat can not be charged on WCT contract Becoz WCT is contract where Contractor is giving only one bill for material & Service so neither vat & nor Service tax charged on this type of contract
so that WCt is to be charged on whole value. WCT rate is t o be decided keeping service tax & VAT Amount
TDS is the income tax liablity which has to be deducted when we are making payment o contracor
Karan Malhotra
(Auditor)
(66 Points)
Replied 01 January 2012
Dear Shivaji,
WCT
the question of WCT arises only in the cases of contractors.Whenever in a contract both labour as well as material component is included in the invoice and the contract between the contractor and contracte does'nt bifurcate the amount of material and labour so it is not possible to assign the separate value for VAT and service Tax. therefore WCT is charged to the full value.
Therefore the following conditions are pre-requisite of charging WCT.
hence it can be said that WCT is a subsitution of VAT and Service Tax.
TDS on Contractor
It is covered U/s 194C of Income Tax Act.As per the provisions of this section is somebody pay an amount to contractor then he would deduct a TDS @ 2%/1% and subsequently a contractor get a credit of the same while filing his income tax return.
Thanks
Karan Malhotra
M No 9999098408
VIMAL KUMAR
(Assistant Manager)
(60 Points)
Replied 21 January 2012
Sir,
I want to know is WCT amt. deducted on contractro bill can be adjusted from Vat amt.
prashant
(Articled Clerk)
(28 Points)
Replied 24 May 2012
Rajesh
(Accountant)
(31 Points)
Replied 27 July 2012
If any service provider receives an invoice from a contractor/vendor including WCT @ ... and S.tax @ ......
then
1. Is TDS deductible on the part on service provide before making payment ?
2. Rate of Deduction?
3. what should be the rate of WCT on invoice?
4. what shouldb the amount of on which contrcator/vendor should charge WCT and S.Tax
kindly reply asap
Rajesh
(Accountant)
(31 Points)
Replied 27 July 2012
If a vendor having TIN number it means it is a registerd dealer.
If such vendor / contractor provides bill in which he is claiming material cost alongwith labour cost and he is presenting bill to a professional service provider (having only S.Tax and TAN no) , then what
1) shoudl b d rate of TDS Deduction
2) At what rate of deduction and on what amount like full invoice amount(incl material cost alongwith labour cost + both taxes) or in two different parts( like material separate and services separate with dieffernt rate of deduction)
Kindly reply asap
Karan Barve
(Unit Accounts Head)
(21 Points)
Replied 13 September 2012
What is WTC
If a limited company receives bill from VAT register vendor for printing charges on roll & vendor is charging vat in bill
1) Is wtc is deductible on total bill value or only on basic amount excluding VAT whcih includes material cost & labor charges
2) Is TDS U/S 194 c is deductible on entire bill amount
3) Is sett off Vat can be taken
Ankit
(Account Executive )
(28 Points)
Replied 20 July 2013
thanks for share this Knwoledge abt WCT
bt i hv dought abt how to record the Sale bill(Certified by Architech) entry of civil work Contractor if the vender is at Silvassa..(one of the Special Economic Zone) plz i hv big dought abt it coz of my vender reaised d bill in following method
1) charge Vat @ 4% of 75% of Total bill Amount & S.T. @ 12.36% of 33%
2) charge Vat @ 4% of 75% of Total bill Amount & S.T. @ 12.36% of 40%
3) charge Vat @ 4% of 70% of Total bill Amount & S.T. @ 12.36% of 33%
4) charge Vat @ 4% of 60% of Total bill Amount & S.T. @ 12.36% of 40%
etc..
so i hv big dought which 1 i follow.. n which 1 is correct & right method as per Silvassa Govrt. plese give me answer in details...
nishit maheshwari
(Student CA Final )
(22 Points)
Replied 09 June 2015
dear sir,
please tell me whis is the tratment if wct paid on purchase.
whether credit of wct is taken or not.
saurav goel
(saurav)
(23 Points)
Replied 22 June 2016
sab fail ho jaoge saalo... book me pdho yaha nahi.....
Harish Bhojwani
(1 Points)
Replied 18 August 2016
Sir,
please explain me following:
a company wants to give contract to contractor based on WCT in state of gujrat. I wanna know following-
1. what benifits company will get by WCT. probably they will save VAT paid as the same is higher aroun 14.5% whr as WCT will be lower. Company can however not take credit of VAT paid to contractor as they are the end user of product.
2. what are the losses to contractor if he goes by WCT method. or is it benificial for bothe
3. what happens to INPUT VAT in case contractor takes WCT process with department. can he take credit of INPUT VAT. If yes, than where will he utilise the same.
thanks for patience reading.
CAclubindia
