Works contrac tax

[pradeep gupta]

Dear sir,

 

Suppose one company providing service Under Works Contract.

and to whom serivce has been provided, is deducting works contract tax.

Can i claim it as credit on the payment of serivce tax or can i get the refund of the amount so deducted.

 

 

With Regards

Pradeep

[Brijesh Verma]

Works contract Tax is being deducted under the provisions of the respective State VAT law. This has nothing to do with Service Tax as of now. Hopefully, across the board credit might be available under GST but not under the present framework. U need to check under the VAT Law itself of your state.

AI Summary

Can a company claim credit for works contract tax deducted by service recipient? Not under current VAT laws. A user inquired whether a company providing services under a works contract can claim credit or a refund for works contract tax deducted by the service recipient. The response clarified that works contract tax is deducted under state VAT laws and is not related to service tax. Currently, credit is not available under the existing framework, though it might be possible under GST in the future. The user was advised to check the specific VAT laws of their state for further guidance.