TaxTMI 
TaxTMI 
We have purchased a material from a party. He(Individual) have not charged vat on the bill but the total amount is inclusive of labour charges and we are a company. will wct be applicable.
WCT applicablility
02 Jun 2017 
4 Replies 
1498 Views Asked by
Works contract applicability depends on whether the supply is a finished product delivered exclusively to the buyer, requiring factual clarification.
Whether a transaction qualifies as a Works Contract depends on whether the supplier delivers a finished product to the buyer that is not sold in the market to others; inclusion of labour charges alone does not determine status. Establishing applicability of state VAT, works contract tax or service tax requires factual detail on the nature of the supply, destination and resale intent of the finished goods, invoice composition, and contractual terms. (AI Summary)
Whether a transaction qualifies as a Works Contract depends on whether the supplier delivers a finished product to the buyer that is not sold in the market to others; inclusion of labour charges alone does not determine status. Establishing applicability of state VAT, works contract tax or service tax requires factual detail on the nature of the supply, destination and resale intent of the finished goods, invoice composition, and contractual terms. (AI Summary)