Contactors Taxation

[Khushwant Singh]

What is tha procedure for taxing contractors (civil) under the Punjab VAT Act?

AI Summary

Tax Procedures for Civil Contractors: Section 27 of PVAT Act Requires WCT Deduction and Offers Three Taxation Schemes A query was raised regarding the taxation procedure for civil contractors under the Punjab VAT Act. The response highlighted Section 27 of the PVAT Act, which mandates tax deduction from amounts payable to works contractors. Civil contractors must charge Works Contract Tax (WCT) at the applicable rate and undergo assessment by the PVAT Department. Three taxation schemes are available: charging WCT on actual supply, availing abatement on services/labor and charging WCT on material supply, or opting for a composition scheme.