14 May 2009
Section 2(ja) of CST act defines WCT as follows: ‘(ja) ‘works contract’ means a contract for carrying out any work which includes assembling, construction, building, altering, manufacturing, processing, fabricating, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property; ”.
Basically it is a composite contract which involves rendering of services & supply/pass on of material. While rendering such services if any material is passed on to the buyer then it may be covered under WCT.
VAT and Income taxes are two separate levies. VAT is implemented & administered by State government while income tax comes under central government jurisdiction. & so it is necessary to deduct TDS under WCT as well as under Income Tax.
For better understanding read Taxmann's Central Sales Tax (Law & Practice) by V.S. Datey.
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