WCT on labor charges, Other Topics

[Sanjay Vasava]

Dear Sir,

We have awarded labor charges contract to party for machanical work (I.e Erection, Febrication , Instalation )

Contract Value :- 25 Cr.

Please suggest me can i be deduct WCT ??

Thanks & Regards,

Sanjay Vasava

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Any material supply is involved in this contract or it is a pure labour contract?

[Ganeshan Kalyani]

In my view, fabrication, erection and installation by default includes material portion. Even if the main asset is supplied by vendor, the service provider of fabrication, erection and installation need to incidentally add some material to carry out the aforesaid activity. Hence in my view, works contract tax need to be deducted.

As the works contract tax paid by the contractee is a credit to the contractor, it is better to pay,