Man (Accountant) (77 Points)
23 May 2013Hi all,
One of our client is based in Karnataka & has deducted works contract tax (WCT) @ 14.5% on installation services provided by us.
Our company is based in Maharashtra. Now my question is whether installation services are liable for wct? There is no supply of material involved in transaction. Can some one give me the exact defination of WCT under karnataka Vat act with apropriate sections!
Also can we avail credit of such tax deducted by our client?
Thanks.
shyam
(Audit assistant)
(33 Points)
Replied 23 May 2013
my opinion 12.36% service tax shold be levied.
I dont know vat act but as per finance act,94 works contract means maerial must be consumed or supplied in execution of works contract.
Here there is no material supplied then there is no question of vat.
Also srevice provider is liable to pay tax to govt.
Please take advise of expert.
shyam
(Audit assistant)
(33 Points)
Replied 23 May 2013
complete overview of service tax on works contract
https://www.indiantaxupdates.com/2012/11/05/service-tax-on-works-contract-wef-1st/
Sonu Kumar
(Account Manager)
(665 Points)
Replied 07 October 2013
In The Work Contract Services Material and Labour Both are used but in your case material are being not used so not need to pay wct.
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