WCT means Work contract Tax, it means when a company gives
the contract to another company to be workdone with labour
and another company worked. then the main company duduct
the wct 4% or 2%(if they have approvel from govt.).
and first company deposit that deducted amount in bank as
challan, after this retuned in sales tax department.
and issue the wct certificate to the contractor by
WCT IS APPLICABLE WHERE THE PURCHASE OF MATERIAL & LABOUR
BOTH ARE IN THE PARTY BILL. AND THE PARTY IS ALSO FORM SAME
STATE LIKE IF YOUR FIRM IN DELHI AND PURCHASE OF MATERIAL &
LOBOUR CHARGES ARE SAME FORM DELHI SO YOU CAN DEDUCTED WCT @
2% ON DELHI.
EVERY STATE RATE OF WCT IS DIFFRENT.
WCT means Works Contract Tax. When property of goods
transferred in execution of works contract with the help of
labour and service components, it falls under the catagory
Like Builing construction, Road, Dam, Power Station,
manufecturing of shirts and so on.
As u know government has intention/power to levy tax on
Sale of goods only. and In order to comply this
constitutional requirement what ever labour/service portion
invovled in contact shall be deducted to arrive at the
taxable turnover of WCT.
As no stete clearly narrated the methology of determination
of taxable turnover but with the help of various legal
pronouncements Determination of taxable turnover under WCT
WCT is calculated only on the material involved in the
Without going into deep in the matter following dedctions
are as follws:
1. Labour charges, Services charges
2. Machine hire charges being utilised in execution of WCT
3. Consumables Cost
4. Amount paid to sub-contactors
5. labour establishments charges with profit elements in
labour and service element
I AM RECEIVING THE GOODS FROM FACTORY BY STOCK TRANSFER
I AM ISSUUING THE FORM- F FOR THE VALUE.
IN CASE I AM RETURNING THE GOODS AS REJECTION WEATHER I
HAVE TO RECEIVE THE FORM F FROM OUR FACTORY CONFIRM ME
our Consinor Vat rate @14.5%(revised rate) In pujab , is the
same rate applicable in A.P.
Ex:I have billed 10 auto tubes each @ 120/- = 10*120=1200 +
vat 14.5% = 174 total bill value Rs.1374/-...can we collect
14.5% vat or 12.5%(in A.P.) vat from customer..
If the total material cost of secondary steel products @
BSL, Jharkhand, is Rs.30 lacs exclusive of VAT @ 4%, ED @
8.24%, TCS @ 1%, and the buyer is registered under the
Company's Act, 1956 in Bihar, and carrys VAT & CST
certification but no ED registration, then what would be
the proforma of purchase invoice ? And if the Buyer sells
the above materials with the conversion charges or profit
of Rs.5 lacs within Bihar, what would be the proforma of
Sale Invoice ?