What is WCT in tax?

On Sale of Goods, Vat is Applicable. On Sale of Services, Service Tax is Applicable. There are some services which are in nature of both goods and services, These are called Works Contract. Tax on Work Contract are called Work Contract Tax (WCT)

Is WCT applicable after GST?

As per Section 13(4) of the IGST Act, 2017, in cases where either the Supplier or the Recipient are located outside India, the place of supply shall be the place where the immovable property is located or intended to be located. A works contract is treated as supply of services under GST.

What is the rate of works contract tax?

a) If you are a dealer executing works contract for State Government / Local authority, you may opt to pay tax @ 4% on the total value of such contract. In such cases tax @ 4% will be collected at source and will be remitted to the department.

Who introduced the sales tax in Tamilnadu?

The Tamil Nadu General Sales Tax 1939, which was in operation for two decades was replaced by the Tamil Nadu General Sales Tax Act of 1959. The Act of 1959 was passed to implement the recommendations of Dr. P.S. Loganathan, who at the Government’s instance, reviewed the general sales tax system.

Is GST applicable on works contract?

However, the GST rate for works contract related to construction or building of a unit intended for the purpose of sale is 12%….GST on Works Contract.

Ground for Difference Works Contract Composite Supply
Input Tax Credit (ITC) to the recipient of Supply Not available (Apart from specific Situation discussed later) Available

What is work contract with example?

Works contract means a service contract involving supply of goods to execute the contract. Hence, works contracts are a mixture of service and transfer of goods. Examples of works contracts are the construction of a new building, erection, installation of plant and machinery.

What was the percentage of WCT?

(A) Pay WCT tax as per composition rate i.e 4.12% ( 4%+ 2% Edn cess and 1%SHEcess) on total value of contract excluding value of transfer of property of goods and VAT in this case no Cenvatcredit is admissible on duty and cess paid on inputs used in relation to such works contract.

What is WCT number?

WCT (Work Contract Tax) is now solely under jurisdiction of Sales tax authority of the concerned state. WCT is applicable where work/composite supply is being executed i.e. contract consisting of supply & service both. Payer will have to deduct WCT and deposit the same in the local Sales Tax authority.