WCT on Service Tax

[Bhairob Chandra Bor]

Dear Sir,

Work Tax liability where the gross construction bills are inclusive of service tax. Kindly explain should we deduct the WCT on the service tax also? ( Basic ₹ 100 + Service Tax ₹ 12 =Gross bill Rs.112).

Kind Regards,

bcb

[Ramanujam Varadarajan]

There is no specific exclusion under VAT provisions but still generally not required to be applied on service tax component. Under Income tax provisions, there is exclusion of Income tax TDS on service tax component.

AI Summary

Work Contract Tax Generally Not Applied on Service Tax Component in Construction Bills; Income Tax TDS Excluded A query was raised about whether Work Contract Tax (WCT) should be deducted from the service tax component in construction bills that include service tax. The response clarified that, while there is no specific exclusion under VAT provisions, it is generally not required to apply WCT on the service tax component. Additionally, under income tax provisions, there is an exclusion for Income Tax TDS on the service tax component.