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Vat, services tax, tds and wct on works contract
Dear Expert,
Please help me understanding concept of WCT.
A corporate has given a contract to a proprietor for construction of a server room. Contractor has not separated bill in material and labor , has not charged any vat or service tax. Contract value is 80 lacs.
Please guide me,
1. whether the company is required to charge service tax under reverse charge mechanism?
2. if yes, what rate and on what value?
3. Is there any difference in service tax and WCT? Do we need to deduct WCT and TDS or only TDS?
Replies (2)
Hello Neha,
wct would be charged if contract amount exceed rs. 1 cr. & TDS would be deducted u/s. 194C. Service tax would be applicable under works contract service under reverse charge mechanisim.
Hi Sir,
Coud u please give me reference from where this 1 cr. limit is taken. if you could share any section or notification for this, it would be great.
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