07 June 2014
Works contract is a type of contract which involves transfer of material as well as labour in the work involved. Examples of WC are civil contracts, building contracts, installing of plants and machinery, servicing of vehicles, etc. In case of WC, the VAT implication depends upon case to case. In normal cases, the VAT rate on WC is 8%. However, in case of civil contracts, it is 5%, in case of Builder and Developer, it is 1% and so on. It is upto the dealer to opt for composition or normal taxation in case of WC.
CAclubindia
