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
- Supply through E-commerce Operators
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Sales return eway bill
- Relief u/s Section 89
- GST ON DAMAGED GOODS
- Specified Profession
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG on ETF gold & silver
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
