What is wct?

Hello SIr,

My Self Parth Thakkar. I am working in Solar mannufacturing company as an account officer.

My question is about WCT. What is the mening of WCT? and is it refuntable ?

Goverment Departmnet deducted WCT charges 2% and TDS 2% also so what is the different between and proper mening of WTC.

Thanks.

 

 

Replies (4)

WCT is Works Contract Tax, and is adjusted against VAT laibility. It differs from state to state, in Gujarat its 2%. For details refer: :https://www.consultconstruction.com/blog/entry/wct-tds-under-gujarat-vat.pdf

it is similar concept as tds under income tax. wct is works contract tax. wct provisions are applicable only on works contracts i.e. where labour and goods are involved in a single contract. Seller will charge wct tax in bill just as normal vat but buyer will deduct tds popularly known as wct deduted. similar to income tax tds u can claim credit for this wct deducted by buyer
u have to get wct certificate from buyer n claim wct in vat returns. Rules differ from state to state. i think in gujrat seller is supppsed to give a specified form giving details of sales and then buyer will issue u the wct tds certificate. But when u receive wct certificate please check tin address name of co and all other particulars otherwise department people are always finding reason to deny credit. so co ordinate with the partu and ask them to send the forms in soft copy, check and then ask the party to sign. Some states do not have wct provisions whereas some states treat it as par to vat.
at par with vat.

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