Devendra (Chartered Accountant) (4775 Points)
12 August 2013One of my friend is an Interior Designer, he makes a plan for the client and executes the same by using his own labour and material and charges lumpsum amount along with his profit margin. Whether Works Contract Tax is applicable for him?
Also please provide me other cases where WCT will be applicable.
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 12 August 2013
Yes, Works Contract tax or VAT and ST are applicable in this case. Any supply of material along with construction,fitting,erection,installation,repair, maintenance,involving labour are all classified as WCT. The total amount received is to be bifurcated into material and labour components including profit. The former is liable for VAT and latter comes under ST levy........mjk
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