Work Contract Tax
This query is : Resolved
16 August 2010
What is work contract Tax. what is the difference between VAT & WCT.
What is the whole procedure of WCT under delhi VAT.
What is the whole procedure of WCT under delhi VAT.
16 August 2010
Works contract is applicable for work contractors for those work cannot segregate the Materials and labour
Message likes :
1 times
17 August 2010
In fact WCT in Delhi is VAT applicable in the case of work contracts, i.e. contracts involving material supply and activities of erection/commissioning/labour etc.
As per Delhi VAT, in the case of work contracts, tax is payable only on material portion. In case the proportion of material is not determinable, then a standard deduction for labour portion may be reduced from value of work contract and remaining amount is considered as material portion on which DVAT is payable. Like in the case of civil work contracts, there is a 20% deduction allowed for labour portion and hence DVAT is payable on 80% of the work contract value if the material value can not be identified with accuracy separately.
As per Delhi VAT, in the case of work contracts, tax is payable only on material portion. In case the proportion of material is not determinable, then a standard deduction for labour portion may be reduced from value of work contract and remaining amount is considered as material portion on which DVAT is payable. Like in the case of civil work contracts, there is a 20% deduction allowed for labour portion and hence DVAT is payable on 80% of the work contract value if the material value can not be identified with accuracy separately.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is any professional CA is here please reply
- Reopen of assessment proceeding
- Rental income gst and it purpose
- Putting a heading on received mail
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Experts need help
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Gift Received from nonblood relative
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
