03 March 2010
WCT is a tax on transfer of property involved in excution of works contract.
For example, when a contractor undertakes to construct a building, materials like Bricks, cement, TMT Bar, stone chips, sand etc gets transfered to the contractee.
By a legal fiction, vide amendment to Art. 366 of the constitution, such transfer are treated as deemed sale, and States were given power to impose sales tax(now VAT) on such transfer.
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