Wct
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 August 2012
WHAT IS THE CONCEPT OF WCT ? HOW IT IS TO BE COMPUTED ? HOW IS IT RELATED TO VAT & SERVICE TAX ?
16 August 2012
After 42nd Amendment in the Indian constitution, Works Contract was included for taxation purpose both by Central and State. Since works contract is a composite of both material and labour, the states have been given power to collect tax as material is involved as goods. Later, the Central Government also brought this under service tax levy. But they cannot touch value of goods involved in the works contract therefore they levy only on labour charges. This is the concept.
Vat is computed either on composition scheme or segregation value, as per the STATE VAT Act.
Service tax is computed on the turnover after deducting the actual material cost, as shown in the VAT return, or 40% of the total amount charged.
Vat is computed either on composition scheme or segregation value, as per the STATE VAT Act.
Service tax is computed on the turnover after deducting the actual material cost, as shown in the VAT return, or 40% of the total amount charged.
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