TaxTMI 
TaxTMI 
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
Works Contract Tax
29 Sep 2016 
5 Replies 
1911 Views Asked by
Works contract tax as a withholding obligation by the recipient, with VAT on materials and labour cess liabilities.
Works contract taxation requires suppliers to apply service tax treatment for works contract services while VAT is charged on material portions; WCT functions as a tax deducted by the recipient from contractor payments with a certificate enabling credit against output VAT, and labour cess is the contractor's liability but falls on the owner if unpaid; interstate supply may render state WCT inapplicable. (AI Summary)
Works contract taxation requires suppliers to apply service tax treatment for works contract services while VAT is charged on material portions; WCT functions as a tax deducted by the recipient from contractor payments with a certificate enabling credit against output VAT, and labour cess is the contractor's liability but falls on the owner if unpaid; interstate supply may render state WCT inapplicable. (AI Summary)