WCT - Work Contract Tax in Jammu

Work Contract Tax (WCT):

Work Contract Tax is charged whenever we are selling a product manufactured alongwith some services, (for e.g. Contractors uses raw materials liable to charge sales tax/ Vat) constructions services where the contractor pays vat on raw material /input material but doesn't allow to charge the vat on building manufactured, but in a capacity to charge the Work Contract Tax. The tax is levied by the state govt. hence, charged & administrated by State Govt.

Present rate of W C T is 4% generally, but it is 2% in case of govt. aproved contracts