Answer plz
This query is : Resolved
Guest
Guest
(Querist)
15 September 2011
good morning dear expert,
i m from uttarakhand i want to no about wct in uttaakhand.
What is the actual concept of WCT? when it is required to be cut? and what are the consequences if not cut by a co.
i m from uttarakhand i want to no about wct in uttaakhand.
What is the actual concept of WCT? when it is required to be cut? and what are the consequences if not cut by a co.
26 September 2011
well bro,
WCT refers for WORK CONTRACT TAX
WCT is nothing but VAT charged on the composite turnkey projects.
There are certain turnkey projects in which the goods are also supplied and also the erection and the construction of the asset is required to be done. Exmpl Construction of a residential building or plant.
For constructing the building or plant, you are also required to supply the goods to the clients which are consumed in the construction activity.
On such contracts, it is not easy to calculate the actual cost of materials being supplied and consumed at particlualar point of time, so generally WCT is charged on composite basis @ 4 %, where as the goods consumed may belong to any category of VAT i.e. 4 % 0% or 12.5 %
Penalties provions are provided under the VAT act of the state for non-deduction of the WCT as it is nothing VAT charged on composite basis
WCT refers for WORK CONTRACT TAX
WCT is nothing but VAT charged on the composite turnkey projects.
There are certain turnkey projects in which the goods are also supplied and also the erection and the construction of the asset is required to be done. Exmpl Construction of a residential building or plant.
For constructing the building or plant, you are also required to supply the goods to the clients which are consumed in the construction activity.
On such contracts, it is not easy to calculate the actual cost of materials being supplied and consumed at particlualar point of time, so generally WCT is charged on composite basis @ 4 %, where as the goods consumed may belong to any category of VAT i.e. 4 % 0% or 12.5 %
Penalties provions are provided under the VAT act of the state for non-deduction of the WCT as it is nothing VAT charged on composite basis
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