WCT

Dear Colleagues,

We deal in Indivisible AMC's for telecommunication equipments. We pay service tax on the entire amount. We do not charge VAT (in the shape of WCT)  in our invoice. Still some of our customers are deducting WCT on the contract value. Can we claim credit of such WCT?

Is VAT (WCT) applicable on Indivisible AMC Contracts?

Replies (4)

Hi,

If there is an element of material in the work, you are liable for VAT (WCT) on the material portion.  Service tax is payable on service portion.  WCT TDS is advance payment of tax and you can adjust the same from your VAT liability.

 i AM AGREE WITH ANSWER OF MR Dharmaraju 

Hi friends, I agree with your views but can you please guide me on the tax implications of indivisible contracts wherein it is not possible to segregate material and service component. What are the composition schemes available for same and how is service tax to be charged for same.

In Maharashtra VAT is to be charged @ 8% on indivisible works contracts, how is service tax to be charged on same.

Hi,

Madam where were you during all these days.

In VAT provisions, the Rules have provided for deduction for labour charges at a specific rate like 15%, 20% etc., in Karnataka.  I believe there may be similar provisions in Maharashtra Also.  There is an option to pay composition tax at a specific rate (4% in Karnataka) on total value inclusive of labour charges.

In service tax also there are provisions similar to this.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details