LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Wct on basic + vat or only on basic

Rahul Being RG (CA FINAL) (283 Points)

24 February 2017

HI EVERYONE

I have a question- whether WCT on job work in case of Printing & Stationery is deductible on BASIC+VAT or only Basic Amount?

Thanks

Reply
Follow
Share

4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 24 February 2017

Basic contract value

Rahul Being RG (CA FINAL) (283 Points)
Replied 24 February 2017

Thanks can you give me a Source of Information??

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 24 February 2017

An example of WCT refer: /forum/vat-and-wct-249828.asp

(Guest)

the question of WCT arises only in the cases of contractors.Whenever in a contract both labour as well as material component is included in the invoice and the contract between the contractor and contracte does'nt bifurcate the amount of material and labour so it is not possible to assign the separate value for VAT and service Tax. therefore WCT is charged to the full value.

Therefore the following conditions are pre-requisite of charging WCT.

(1) Contract Work

(2) Contractor transfer some material along with his services

(3) Contract between the parties does'nt bifurcate the services and material amount

hence it can be said that WCT is a subsitution of VAT and Service Tax.