work contract tax

[veera swamy]

In a work contract labour and materials seperately shown.VAT for material and service tax for labour claimed.Whether work contract tax for labour shall be deducted on payment.

AI Summary

Understanding Work Contract Tax: Separate Labor and Materials Still Liable, Consider Abatement or Composition Scheme A discussion on a forum addresses the applicability of Work Contract Tax (WCT) in scenarios involving labor and materials. A participant queries whether WCT should be deducted from labor payments when labor and materials are shown separately. Responses clarify that separating these components does not exempt one from WCT liability, and options like abatement or a composition scheme may be considered if separate records are not maintained. It is noted that VAT-TDS must be deducted by the service receiver and varies by state. Additionally, it is clarified that there is no provision for TDS deduction on interstate works contracts under the CST Act, 1956.