He has to file  Normal DVAT 16 Return in case of Works Contract  And  DVAT 17 in case he is applying for Composition Scheme

Suppose Tax Rate applicable on Works Contract is 12.5%

He can deduct this TDS from his Vat Payable and pay balance tax if any

 

Example 1

Suppose Construction service provided of 40 lacs+12.5% WCT

Vat on Materials used in production =8 lacs+ 12.5% Vat

What is WCT payable assuming TDS Deducted by Contractee @ 4%

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Example 2

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 assuming TDS Deducted by Contractee @ 4%

View Answer
  1. Tax Practical
  2. Practical WCT (Work Contract Tax)
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
  • ca usha's image
    What values should be taken in annexure for filing dvat 17 in following cases.. 
    1. If invoice is for sale( no vat separately shown) 
    2. If invoice is for sale and Labour both (no vat shown separately but service tax has been shown separately) 

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