TaxTMI 
TaxTMI 
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
WCT on labor charges
21 Apr 2017 
2 Replies 
1319 Views Asked by
Guest 
Works contract tax applies where fabrication, erection and installation include material components, so deduction is required.
If erection, fabrication or installation involves any material component-whether supplied by the contractor or incidentally used-those activities are treated as works contract and attract works contract tax, so the contractee should deduct and remit WCT; WCT paid by the contractee is a tax credit for the contractor. (AI Summary)
If erection, fabrication or installation involves any material component-whether supplied by the contractor or incidentally used-those activities are treated as works contract and attract works contract tax, so the contractee should deduct and remit WCT; WCT paid by the contractee is a tax credit for the contractor. (AI Summary)