Dear Experts, Can u please tell me the "point of Taxation" of Works contract Tax. For instance, In my company(pvt ltd) we are purchasing materials from one vendor & given to another vendor, he is only doing labour work(service only) for our new building construction work. My doubt is whether i have to deduct Works contract tax in that labour bill or not? or WCT is applicable only if the bill contains materials and labour?
WCT is levied only in case of combined goods & services. If goods and services are purchased seperately from the market. Then it is not covered under the definition of WCT. in the given case, company is not liable to deduct WCT, but service tax can be levied on labor payment. Since, it is in nature of manpower supply.
For this case, i have to pay service tax(Reverse charge)? If the vendor is non-company. If yes, tell me the rate or percentage. And also tell in which service category i have to pay?
CAclubindia
