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.
Contractor transfer some material along with his services
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.
TDS on Contractor
It is covered U/s 194C of Income Tax Act.As per the provisions of this section is somebody pay an amount to contractor then he would deduct a TDS @ 2%/1% and subsequently a contractor get a credit of the same while filing his income tax return.
M No 9999098408