WCT on mobilisation advance

Dear Friend, Pls clarify me whether WCT need to be deducted from mobilisation advance or it will be deducted only against bills for work done.

Replies (9)

WCT is applicable under any State VAT provisions when there is involved transfer of property.  Thus in case of mobilization advances, there is no transfer of property involved and hence no WCT is applicable.  WCT is applicable on the value of transfer of property for a particular RA bill or on gross bill value in case of composition subject to certain adjustments.

I support the view of Mr.Suryam

whether mobilisation advance can be transfered in VAT or nt if s or no plz send me case study

WHETHER MOBILISATION ADVANCE CAN BE TRANSFERED IN VAT OR NT IF YES OR NO PLEASE SEND ME THE CASE STUDY

Originally posted by :CA. C V SURYAM
" WCT is applicable under any State VAT provisions when there is involved transfer of property.  Thus in case of mobilization advances, there is no transfer of property involved and hence no WCT is applicable.  WCT is applicable on the value of transfer of property for a particular RA bill or on gross bill value in case of composition subject to certain adjustments. "


 

WCT is only applicable on transfer of property or goods to the contractee (as per the Tax Liability on Works Contract in VAT regime). In Mobilization Advance, there is no transfer of Property is involved and the Mobilization Advance is not a part payment or advance payment towards consideration of Works Contract to be executed. Whereas Mobilization Advance is to be recovered from Gross Value of R.A Bills along with the WCT being deducted on Gross Value of R.A Bills. Hence, WCT is not applicable on Mobilization Advance.

yes i agree WCT on mobilisation adance is not equired as there is no transfer of property

 

but what to be done on WCT TDS on mobilisation advance

No WCT TDS  obligation on the dealer on payment of mobilasation advance .....refer case of "DELHI ELECTRIC SUPPLY UNDERTAKING Vs  Commissioner of Sales Tax  ,(2006) 146 STC 72 (ALL.) and Hindustan Construction Co. Ltd . Vs state of Haryana ( 1998) 109 STC 600 ( P & H )

 

 

Sir,

Please suggest the notification No. in R-VAT regarding the same matter.

 

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