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Tax Practical
Practical WCT (Work Contract Tax)

Normally, a contractor in WCT pays 12.5% Works Contract after deducting Input Vat on Purchase of Material etc (Output WCT-Input Vat=WCT Payable)

However, if he opts for composition scheme, he pays Output WCT at lower rate.

However, he cannot take input of vat on any expenses.

 

Example

Suppose Construction service provided of 100 lacs+1% WCT under Composition

Vat on Materials used in production =30 lacs+ 12.5% Vat

What is WCT Payable

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.