Works contract tax in maharashtra

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CA Nilesh

CA Nilesh (Querist)
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15 May 2009 At what rate WCT is charged and at amount?

What is the concept of WCT Tds?

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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16 May 2009 There are three methods for accounting for works contract:
1.Actual basis - VAT is to be charged on material and service tax on labour charges on actual consumption basis + appropriate apportionment of profit between the two.

2.On adhoc basis.
VAT - On 70% of contract amount
Service Tax- On 30% of contract amount

3.Composition Scheme

VAT-@5% of contract price.
Service tax @ 4.12 of contract price.

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