28 January 2012
Mr. Author, Tax on transfer of property involved in a works contract(whether civil,electrical,mechanical,painting,interior decoration,printing of photography etc,ship, A/c,bus.or railway coach building and so on)is work contract tax. All government or semi govt and PSUs and some large industrial undertakings are directed to do tax deduction at source(TDS) while making payments to their contractors.After making tds a client will issue a certificate,in a form,on th basis of which,the tax payment by the contractor will be adjusted/reduced. While doing WCT to any private person or a firm there will be no tds and the contractor will pay to the govt required tax directly. TDS made by the client will be deposited to the govt.
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