Works Contract Tax

[Srivatsan Krishnamachari]

Dear Experts,

Please let me know the WCT% in case works contract in various situations. In this Labor cess also need to be considered?.

Regards

Srinivas

AI Summary

Understanding Works Contract Tax: VAT, Service Tax, and Labor Cess Responsibilities Explained for Different Scenarios An individual inquired about the applicable Works Contract Tax (WCT) percentage and the inclusion of labor cess in various situations. Experts responded, asking for the specific state and explaining that service tax for works contracts varies based on the type of work and recipient. They clarified that VAT applies to the material portion and that WCT is deducted by the service recipient. Labor cess is the contractor's responsibility, but if unpaid, the service receiver must pay. The inquiry involved a supply from Telangana to Andhra Pradesh, and it was noted that interstate works contract tax might not apply.