Works contract tax

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Govind Narayan (Querist)
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12 March 2014 Respected experts,

When does works contract tax arises?. And what is VAT on works contract and when it arises?

Thanks in advance.

Govind Narayan

Govind Narayan (Querist)
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20 March 2014 experts please clear my doubt

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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07 June 2014 Works contract is a type of contract which involves transfer of material as well as labour in the work involved. Examples of WC are civil contracts, building contracts, installing of plants and machinery, servicing of vehicles, etc. In case of WC, the VAT implication depends upon case to case. In normal cases, the VAT rate on WC is 8%. However, in case of civil contracts, it is 5%, in case of Builder and Developer, it is 1% and so on. It is upto the dealer to opt for composition or normal taxation in case of WC.

Govind Narayan

Govind Narayan (Querist)
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07 June 2014 Thanks sir.
Is works contract tax applicable in printing industry? what is the rate of such tax in printing industry?.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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07 June 2014 Yes. WCT is also applicable to printing industry. You can opt for 8% VAT (Maharashtra) in such cases.

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