What is Works Contract Tax ?

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Please explain me what is works contract tax and also let me know whether it is applicable for maintenance contracts ? and also is it applicable for Manpower supply contract ?

Manpower supply is a service and service tax is levied for that but whereas why both service tax and works tax is applicable ? In Manpower supply contracts no goods are supplied, then why works tax ?

 

Suppose if the customer pays works contract tax (WCT) on behalf of us and give some certificate for that then how can we claim for that ?

 

Also let me know whether VAT TIN No. is used for WCT also ?

 

Please explain me in detail...!!

thank you...!!

Replies (1)

As per act of Works contract Tax you will get 30% of the labor charges exemption on total turnover.

Even Maintance Contracts come under Works contract Tax

We have to maintain Service labor account separately by benefited bills.

We can you use VAT Tin no on Works contract Tax to get exemption of 30% of labor charges on total turnover.


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