WCT under Uttar Pradesh

[Guest]

sir,

I would like to know that whether entity (location-up) is liable to deduct wct in case of rewinding of motor?

for further clarification, vendor also provide the spare parts along with rewinding.but, they are rewinding the motor at their location.I.e.outside from our factory.

[Ganeshan Kalyani]

Work contract tax (wct or vat tds) is deductible from the payment to be made to the service provider/vendor subject to conditions.

[Guest]

sir,

what is the consequences when we are liable to deduct wct *(vat tds) ?

[Ganeshan Kalyani]

You will have to pay interest and face proceedings.

AI Summary

Work contract tax deduction required for payments to service providers; non-deduction attracts interest and proceedings. Work contract tax (WCT) is deductible from payments to the service provider for motor rewinding performed at the vendor's location and where spare parts are supplied, subject to the statutory conditions for WCT/VAT TDS; failure to deduct exposes the payer to interest and recovery or compliance proceedings by the tax authorities.