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Discussion > Income Tax > TDS >

What is WCT? and what is TDS on contract?

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job


[ Scorecard : 386]
Posted On 04 August 2010 at 07:45 Report Abuse

Hello,

i want to know

what is WCT?

What is is TDS on contract?

WCT is like VAT it is added to the value of goods in invoice by the manufacturer and TDS is deducted by the customer at the time of making payment for goods purched.

is it correct ?

please tell me about WCT

thanking you



Total thanks : 2 times

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Harpreet
* * * * * *


[ Scorecard : 1648]
Posted On 04 August 2010 at 11:02

Dear please find enclosed herewith the attached file for WCT Chapter.



Attached File : 34 works contract tax.doc downloaded 12367 times

Total thanks : 2 times




Harpreet
* * * * * *


[ Scorecard : 1648]
Posted On 04 August 2010 at 11:06

Please find enclosed herewith the attached file for FAQ on WCT.



Attached File : 37 wct faq.doc downloaded 3234 times


CA,CS, ICWA Inter MANOJ KEDIA
Working With Educomp


[ Scorecard : 99]
Posted On 04 August 2010 at 18:25

as per my knowledge

WCT is like vat only

but direct Vat can not  be charged on WCT contract Becoz WCT is contract where Contractor is giving only one bill for material & Service so neither vat & nor Service tax charged on this type of contract

so that WCt is to be charged on whole value. WCT rate is t o be decided keeping service tax & VAT Amount

 

TDS is the income tax liablity which  has to be deducted when we are making payment o contracor

 



Total thanks : 1 times



Karan Malhotra
Auditor


[ Scorecard : 66]
Posted On 01 January 2012 at 17:46

Dear Shivaji,

WCT

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.

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.

 

Thanks

Karan Malhotra

M No 9999098408

 



Total thanks : 5 times



VIMAL KUMAR
Assistant Manager


[ Scorecard : 60]
Posted On 21 January 2012 at 12:44

Sir,

I want to know is WCT amt. deducted on contractro bill can be adjusted from Vat amt.




prashant
Articled Clerk


[ Scorecard : 23]
Posted On 24 May 2012 at 11:11

thanx a lot Mr. Karan for explaining wct in short



DEEPAK
STUDENT


[ Scorecard : 21]
Posted On 24 July 2012 at 11:47

what is wct?

 




Rajesh
Accountant


[ Scorecard : 31]
Posted On 27 July 2012 at 13:06

If any service provider receives an invoice from a contractor/vendor including WCT @ ... and S.tax @ ......

then

1. Is TDS deductible on the part on service provide before making payment ?

2. Rate of Deduction?

3. what should be the rate of WCT on invoice?

4. what shouldb the amount of on which contrcator/vendor should charge WCT and S.Tax

 

kindly reply asap




Rajesh
Accountant


[ Scorecard : 31]
Posted On 27 July 2012 at 13:21

If a vendor having TIN number it means it is a registerd dealer.

If such vendor / contractor provides bill in which he is claiming material cost alongwith labour cost and he is presenting bill to a  professional service provider (having only S.Tax and TAN no) , then what

1) shoudl b d rate of TDS Deduction

2) At what rate of deduction and on what amount like full invoice amount(incl  material cost alongwith    labour cost + both taxes) or in two different parts( like material separate and services separate with dieffernt rate of deduction)

 

Kindly reply asap

 

 



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