WCT Deduction

This query is : Resolved

AMAN (Querist)
Follow

14 July 2011 On which amount WCT will be deducted:

1) Bill amount +Service Tax + Vat

2) Bill amount excluding service tax

3) Bill amount excluding vat & service tax

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

14 July 2011 Works contract tax under VAT has to be deducted from the bill amount alone ie., VAT and ST levied need not be considered for WCT deduction.

AMAN

AMAN (Querist)
Follow

14 July 2011 but sir ,
as per act,wct to be deducted on paymet made to contractor

Message likes : 1 times

NITIN SHARMA

NITIN SHARMA (Expert)
Follow

15 July 2011 You have to be deducted vat on Bill amount +Service Tax + Vat
.

Raj Choudhary

Raj Choudhary (Expert)
Follow

17 November 2013 plzzzzz can some buddy explain me on which amount wct will be deducted in what is the accounting treatment????

Krishan Aggarwal

Krishan Aggarwal (Expert)
Follow

12 June 2014 TDS is to be deducted on Value + VAT (excl. Service Tax). Also, WCT needs to be deducted on Basic Value (excl. all taxes).

Reference:
This is as per new circular 01/2014 dated 13.01.14 issued by Central Board of Direct Taxes, India to get exemption on TDS on service Tax. No TDS on Service Tax if Shown separately under all sections on payment to resident.

Hence, TDS is to be calculated on the Basic Amount + VAT (if applicable - In case of Work Contract Tax) and not on the Gross Amount [or TDS is to be calculated only on the Basic Amount (if VAT is not applicable)]. Service Tax component is to be excluded from TDS calculation.

Krishan Aggarwal

Krishan Aggarwal (Expert)
Follow

12 June 2014 Judgment of Punjab & Haryana High Court in CWP 14797 of 2010 Larsen and Toubro vs. State of Haryana

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now