Work contract tax

Hi

 

What is work Contract Tax?

What is rate of WCT in UP? Please give reference of UP Sales Tax Authority.

Who is work contractor as per UP VAT Act?

How it is calculate with example? 

is it deductible on payment basis or due basis?

 Suppose If i did't deduct wct on Payment Rs 1000 Should i need to grossing up this figure? Like if need to deduct 4% WCT then i need to Grossing up with Rs. 1042. & deduct Rs. 42 as WCT 

 

Thanks

 

Replies (7)

Kindly some one advice please

1.The Contract Where Labour and Material both are used is called work Contract

2. WCT rate is 4% in Bihar........ when Bill is Certified by the client it is Deducted

3. Contractor Who Use Labour and Material Both for Contract

4. A Client who is certifying any Contractor Bill need to Deduct WCT @ 4%

for example 

BHEL Certifying Bill of NCC for Rs . 1 Crore

Deduction Will be as Follow

TDS @ 2% - 2 00 000

WCT @ 4% - 400 000

Labour Cess @ 1 % - 1 00 000

Net Payble Amount after deduction  - 93 00 000/-

BHEL Transfer Rs - 93 Lakh in NCC Account

Kindly reply on my last question:-

 

is it deductible on payment basis or due basis?  Suppose If i did't deduct wct on Payment Rs 1000 Should i need to grossing up this figure? Like if need to deduct 4% WCT then i need to Grossing up with Rs. 1042. & deduct Rs. 42 as WCT
 

Thanks. 

It is Deductable on Due Basis.

if some one is providing only labour on work basis then will WCT applicable.

what is the vat rate for works contractor (interior or civil works) in bihar.

Kindly, send rate with service tax.  If gross amount Rs 1000.00

Pl Confirm interior work in up 

how calculate tax ( wct and service tax)

and pl confirm up service tax in wct

and pl confirm up wct Rate 

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