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.
Obligation to Deduct Work Contract Tax for Motor Rewinding Services Explained; Non-Compliance May Lead to Interest and Legal Action. An entity in Uttar Pradesh inquired about the obligation to deduct Work Contract Tax (WCT) for motor rewinding services provided by a vendor who also supplies spare parts. The vendor performs the rewinding outside the entity's factory. A respondent clarified that WCT, also known as VAT TDS, must be deducted from payments to the vendor, subject to certain conditions. The inquirer further asked about the consequences of failing to deduct WCT, to which it was explained that non-compliance could result in interest charges and legal proceedings. (AI Summary)
TaxTMI 
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TaxTMI 
