Rate of wct on works contract tax in W.B. while deducting Wct from works contract in Ctractual Transfer pricing under EPC contract.Whether the rate of tax should be on the total bill payable or the the WCT to be deducted from only service part.
Rate of wct on works contract tax in W.B. while deducting Wct from works contract in Ctractual Transfer pricing under EPC contract.Whether the rate of tax should be on the total bill payable or the the WCT to be deducted from only service part.
WCT will be deductible from the composite bill amount.
By definition, a works contract tax is a tax on "Works Contract" i.e. a contract which is a mixture of Material & Labour supplied during the course of job. So, naturally any tax deductible on the contract cannot be limited to the service portion only.
If there were seperately identifiable elements in the contract and the contract was negotiated seperately for the material & labour portion, it would not have been a works contract in the first case. The material portion would have attracted VAT & the labour portion Service Tax.
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