WCT on labor charges

[Sanjay Vasava]

Dear Sir,

We have awarded labor charges contract to party for machanical work (I.e Erection, Febrication , Instalation )

Contract Value :- 25 Cr.

Please suggest me can i be deduct WCT ??

Thanks & Regards,

Sanjay Vasava

AI Summary

Applicability of Works Contract Tax on 25 crore INR labor contract for mechanical work questioned; material supply may affect WCT deduction. A user inquired about the applicability of Works Contract Tax (WCT) on a labor contract valued at 25 crore INR for mechanical work involving erection, fabrication, and installation. One respondent asked whether the contract involved material supply or was purely labor-based. Another respondent opined that such activities typically include a material component, even if the main asset is supplied by the vendor, suggesting that WCT should be deducted. It was also noted that WCT paid by the contractee can be credited to the contractor, recommending it be paid.