TaxTMI 
TaxTMI 
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
WCT on Service Tax
22 Nov 2014 
1 Reply 
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Works contract tax applicability: service tax component generally excluded from WCT; income-tax TDS expressly excludes it.
Whether WCT should be computed on the service tax element in gross construction bills: there is no specific exclusion in VAT/works-contract legislation, but practice is generally not to apply WCT to the service tax component; income-tax withholding rules expressly exclude service tax from TDS calculation. (AI Summary)
Whether WCT should be computed on the service tax element in gross construction bills: there is no specific exclusion in VAT/works-contract legislation, but practice is generally not to apply WCT to the service tax component; income-tax withholding rules expressly exclude service tax from TDS calculation. (AI Summary)