03 August 2025
WCT (Works Contract Tax) rates do vary from state to state in India, and the way it’s applied can differ too. General points on WCT rates: Typically around 4% to 5% on the gross contract value (which includes both material and labor). Some states levy different rates for labor and materials separately. Some states provide deduction/exemption on value of materials and charge WCT only on the labor portion. In other states, WCT is charged on the entire contract value (materials + labor). Examples: Maharashtra: WCT is charged on the gross amount, but there are specific provisions on deducting material cost. Karnataka: Typically 4% to 5% on gross contract value. West Bengal: Rates may vary, and the tax base could be labor portion after deducting materials. Summary: Yes, WCT rates vary by state and sometimes by the composition of the contract (material vs labor). To know the exact applicable rate and computation, check the WCT Act/rules of the specific state where the contract is executed.
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