WCT Service treatment in Maharashtra

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Sachin Jain CA, CS, CWA

Job

240 Points Posted on 11 February 2010

if i (a pvt. co.in Maharashtra) issued a work order to a contractor for a project involving both labour+materialcosts & no identification of material & service portion is available . Then,

1. As far as I know, i have to 5% Vat (if building contract otherwise 8%) on basic amount, 4.12% S.Tax on same basic amount. Is the contractor is charging right tax amount from me?

2. If Yes, then what credit of VAT paid & Service Tax paid can be availed by me?

3. While payment what amount I have to deduct as TDS / Work Contract Tax? Tell me legal supportings also for your opinion.

can u suggest me what tax i have to deduct T.D.S or W.C.T what & what %

Replies (2)

Rakesh

Commercial Manager

21 Points Posted on 03 April 2010

If a sub-contractor is executing the work for which he is provided the material by the contractor. In such case no material has been sold by the sub-contractor , only execution of work he does with his labour. In this case should the contractor deduct the wct on sub-contractors execution (labour) work?