Wct on basic + vat or only on basic

HI EVERYONE

 

I have a question- whether WCT on job work in case of Printing & Stationery is deductible on BASIC+VAT or only Basic Amount?

 

Thanks

Replies (4)

Basic contract value

Thanks can you give me a Source of Information??

An example of WCT refer: /forum/vat-and-wct-249828.asp

the question of WCT arises only in the cases of contractors.Whenever in a contract both labour as  well as material component is included in the invoice and the contract between the contractor and contracte does'nt bifurcate the amount of material and labour so it is not possible to assign the separate value for VAT and service Tax. therefore WCT is charged to the full value.

    Therefore the following conditions are pre-requisite of charging WCT.

     (1)  Contract Work

     (2)  Contractor transfer some material along with his services      

      (3)  Contract between the parties does'nt bifurcate the services and material amount

            hence it can be said that WCT is a subsitution of VAT and Service Tax. 
 

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