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)
Example :-
In Construction Contract, a builder constructs a building
Is it a Goods or Service?
View answer
It involves both sale of goods (Material) as well as sale of Services(Construction,Engineering Service)
Hence,WCT is charged on it.
Is WCT a Separate Act?
View answer
No,
There is no separate law of WCT
It comes under both Vat and Service Tax
Both Vat and Service tax is charged on it
Are rules of Work Contract same all over India
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Since Service tax is under Central Govt(Except J&K)
Service tax rules on Work Contract are same all over India
However,Vat is under State Govt,
Vat rules on Work contract are different from state to state