Wct - tn vat

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 ...

 

 

Replies (7)

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

Work contract tax is presently following @ 5% after depositinng they will issue Form T. You can adjust same amount against your VAT payable I.e. Output VAT
Work contract tax is presently following @ 5% after depositinng they will issue Form T. You can adjust same amount against your VAT payable I.e. Output VAT
Dear expert, If I have to process a bills of work contract and in invoice it is also clearly mentioned the vat amount, Now my Query is that whether I supposed to deduct wct or not

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
 

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