Navin Agicha
Meaning of work Contract: A works contract is an agreement which is a mixture of service or labour and transfer of goods. Under a works contract the contractor agrees to do certain job in execution whereof, certain goods are transferred to the contractee. Thus, an agreement of building construction, manufacture, processing, fabrication, erection, installation, repair or commissioning of any movable or immovable property, is a works contract. In relation to a works contract only that part of consideration which represents transfer of property in the goods involved in execution of the works contract, shall be taxable.
CONCEPT OF WCT TDS
The concept of WCT TDS is same of TDS, Like in TDS we deduct and Deductee can claim setoff in income tax, in same way dealer can claim setoff of WCT TDS in VAT Payment.
Definition of Works Contract:
Works Contract is defined under the MVAT Act, 2002
Section 2(24) :- the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract including, an agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property.
Works Contract is defined under the CST Act, 1956
Section 2(ja) :- works contract means a contract for carrying out any work which includes assembling, construction, building, altering, manufacturing, processing, fabricating, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property.
Applicability of WCT-TDS:
1) TDS is applicable for Works Contract Transactions.
2) Employer employing Contractor for Work Contract is required to comply with requirement of TDS.
What is covered under work Contract::
- Construction Contract includes contraction of buildings, roads, water purification plant, Bridge, etc.
- Other Contracts, which includes installation of Plant and machinery, air conditions, painting & polishing, laying pipes, etc.
Rate of deduction of TDS:
- 2% in case of Registered Dealer
- 5% in Unregistered Dealer
When to deduct WCT TDS
WCT TDS is required to be deducted on payment basis.
Not Required to deduct WCT TDS
- no deduction as provided under this clause shall be made in respect of any sale or purchase to which section 8 applies.
- no deduction shall be made from any payment made to any sub-contractor by a principal contractor where the principal contractor has assigned the execution of any works contract, in whole or in part, to the said sub-contractor
PROCEDURE FOR WCT TDS
- Remittance of tax to Government Treasure in MTR – 6 within 21 days from the expiry of the month.
- Furnish the Certificate to the Contractor in Form No 402 immediately after deduction of TDS
- Employer shall maintain the record of amount of tax deduction, furnishing of TDS certificate and payment of deduction to Government treasure in Form No 404.
- Employer is required to file annual TDS return in Form No 424 with Joint Commissioner of Sales Tax within 3 months of the end of the year to which it relates.
WCT RETURN
Form 424 Is Required To File Within 3 Months Of End Of Year In Which It Relates (i.e. 30th June)
LATE PAYMENT INTEREST
Interest on late payment is same like MVAT i.e. 1.25% p.m.
WCT PAYMENT CHALLAN
Challan MTR 6 Is Required To Be Paid Within 21 Days From The Expiry of The Month.
ISSUE OF FORM 402
Form 402 Is Required To Be Issued By Deductor To Deductee Immediately After Deducting WCT TDS.
(Author can be reached at agicha.navin@gmail.com)
vendor contract it is written Supply and works of DCS , and Transportation
in this TDS applicable Full ( SUPPLY+DCS+Transportation)
I PAY 100000 A CONTRACTOR UNDER (WCT) HOWMANY AMT DEDUCT FOR TDS PLEASE TELL ME AND WHICH SECTION
hii sir late interest payment is calculate on which amount ?? is it 1.25% on wct payable amt or any other amount ???
How to pay online WCT in maharashtra; Unable to find the link. 21 days are already. invoices are of 19.01.2017. any penalty/intt shall be there ?
how to get wct form fill for deductee ????
What is the due date for filing of form 424 WCT TDs Return in current Year i.e. 2016 17
i have recd one bill with following details is tds & wct applicable to this & what is calculation.
Supply & installation
material Amt: 17,16,948 + vat13.5%: 231788 =19,48,736/-
Installation Charges: 190772 + ST15%: 28616 =219388
Total amt of Bill = 21,68,124/-
Bill raised by pvt ltd com to firm.
Is TDS applicable on VAT Portion also if the same is shown as a separate line item in same Invoice?
How can I login on WCT website and pay WCT. PLS GIVE ME URL
What is the wct rate in the f.y. 2016-2017
how can i pay challan of wct??
how can i submit return on wct online???
on which amount WCT is applicable.
I AM FROM DELHI. I GOT A WORK ORDER FROM GURGAON FOR REPAIR AND REFURBISH OF L.E.D. SIGNAGE WITH REPLACEMENT OF PARTS/RE-INSTALLATION OF SIGNAGE. I AM BEING PAID A LUMPSUM AMOUNT OF RS.50,000/- INCLUSIVE OF TAX/INSTALLATION ETC. HOW DO I RAISE THE INVOICE? CST TO BE SHOWN OR NOT? OR THE INVOICE WILL BE OF RS.50000/- INCLUSIVE OF TAX. PLEASE HELP.
REGARDS, SUMIT
Thanks, it was very useful!
we are manufacturing unit of panel . we have received an order steel light in a company as a contract
sir my question is that how to generate invoice…. (vat/excise/service tax applicable calculation provied me)
We have given a single PO for installation of EPABX and phones. Vendor has given separate invoices for Material and Labour charges with VAT and service tax respectively. Whether this transaction is to be treated as Works Contract Tax – whether WCT TDS under Maha VAT and Reverse charge under Service tax are applicable on this transaction?
Thanks in Advance
WELL CLEING & REPAIR WORK RS.60000/- WCT APPLICABLE OR NOT PLS WCT RATE &
MIMIMUM WCT DEDUCTED RATE
TKS.
YOGESH PATIDAR
Office branding purpose sunboard print tds applicable or not
please let me office branding sunboard print so tds applicable or not
WCT tax applicable for agriculture
Is tds applicable on full bill amount .
Amount 100.00
wct 8% 8.00
s.tax 5.60
TOAL 113.60
Tds will be applicable on Rs 100/- OR less amount
please clarify.
all construction tds payment list actual payment paid work contract
If the deductee is having excess set off Please let me know the TDS payment can be adjusted from TDS payable for FY 2014-15.Please reply
Hi, your article does not mention the threshold limit of 5 lakhs. My question I paid the vendor for Rs 2,00,000 in June 2014 assuming that the threshold limit will not be met. I again paid the vendor for 3,50,000 in october 2014. While making the payment i need to deduct TDS at 5,50,000 or at 50,000.
Thanks,
Prateek
Please tell us what a rate of Wct in 2015-16.
Dear Author,
Please let me know if there is any separte rate defined for WCT deduction where contractors has opted for composition scheme for executing civil works contracts.
Regards
STDS (VAT) @ 3% on billing amount for Registered Dealer in West Bengal.
Mr.Navin Agicha, in case of VAT TDS on MVAT, you not mantion value of work limit, if any contractor corss the amouNt of Rs. 5Lacs then it is applicable 2% VAT TDS ON MVAT.