Dear Experts ,
We are a contractor , We are submitting our running buills like (Supply + Erection + VAT + ST = Gross Value) . Now our client is deducting 5% WCT on the "Gross Value" of bill, whether this is corroect ? or they suppose to deduct only on "Supply" value ? (as per TN VAT)
Please clear me ...
If the works contract is of civil nature it is 2% WCT if non civil i think it is 5% deducting wct on gross value is correct the client would give Form T after 15 days after the realisation of the Cheque
Purchases should be filed with wct deduction in vat return sir ? Can it b refunded if we file vat return ?
Your purchase bills has nothing to do with WCT Your local purchase inputs can be offset against vat Output and capital goods 50% can be offset against VAT Output
WCT is paid seperately along with Form R for all WCT Credits in your books and once paid you have to issue FORM T within 15 days after the realisation of the cheque
TDS to be deducted on WCT bills which will not carry any tax element as WCT tax not be collected by contractor but to be paid on his own on the total bill value. So if it is vat bill you need not deduct TDS
CAclubindia
