work contract tax

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R VAIDYANATHAN

R VAIDYANATHAN (Querist)
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22 July 2011 Pl tell me work contract tax in vat increased 2% to more

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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25 July 2011 Mr R Vaidyanathan,
Sorry,your question is not clear.
MJK

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 August 2011 please refer your query with state also

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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03 August 2025 Hey! About Work Contract Tax (WCT) rates and recent changes, here’s a quick update as of mid-2011:

Generally, WCT rates vary by state because WCT is governed by state VAT laws.

Some states had been considering or implementing rate increases, but it depends on the particular state.

Common Scenario Around 2011
Most states had WCT rates between 2% to 5% on the gross contract value.

A 2% increase or hike could have been proposed or applied by some states, moving from say 2% to 4%, or 3% to 5%.

But there was no uniform national increase in WCT rate — each state decides independently.

What You Should Do:
Check your specific state VAT/WCT notification for exact current rates and amendments.

If you want, I can help find the latest notification or circular from your state. Which state are you referring to?

Also, after GST implementation in 2017, WCT was subsumed into GST, so check if this applies for your current period.

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