Work & contract tax / wct

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2013 Hi Every one i want to know about Work and contract tax. like on which kind of transaction or assessee this tax is applicable. and how to compute it and in DVAT 16 return form it is shown for taking input so how can we claim input in case of WCT in DVAT 16 form. and Give a suitable example to compute WCT tax considering an interior decorator company want to compute its wct..??

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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02 March 2013 The works contract tax is leviable on the transfer of property involved in a contract. This means VAT on the material value of a contract work. In an interior decoration work mterials like timber,iron sections,plywood,paint,hardware,plasterof paris etc are used.From the total receipts a contractor can claim exemption on the labour content and pay vat on the value of different materials consumed and their tax rates. He can deduct an amount equal to the vat paid on thier purchases. This rule exists in all states......MJK

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2013 Dear Sir My uncle is doing painting contractor business where he employed labours for painting works like pop whitewash etc. so he is liable for wct tax or not..?? in delhi area..??