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Activity:
Question posted: 01 21 2010 09:31:20 +0000,
3 answers, 13201 views, last activity
07 06 2010 20:18:08 +0000
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What is the deffirece wetween wct & tds please discribe
WCT means Works Contract Tax, it means when a company gives the contract to another company to be workdone with labour and another company worked. then the main company duduct the wct 4% or 2%(if they have approvel from govt.).and first company deposit that deducted amount in bank as challan, after this retuned in sales tax department and issue the wct certificate to the contractor by contractee. It is calcullated on the contract work of the companies.
TDS stands for Tax deducted at source. Any income payable to the assessee shall be liable for deduction of tax at source by the person responsible for making payment. TDS is deducted at prescribed rate as per the Finance Act of that year.
WCT is the abbriviation for Works Contract, works contract is an agreement between two partees known as cotractor and contractee, contractor is the person who awards the contract and contractee is the person who performs the contract as per agreed terms and conditios. Contract always not necessorily be in writing, oral contracts are also contracts of work. TDS is the abreviation for Tax Deduction at Source, as per running VAT Act and Income Tax Act it required by respective laws that a certain percentage of the contract value is required to be deducted out the contract procceds at the time of payking payment for the contract. It is an obligation for the contractor by the statute to deduct tax at applicable rate, in case contractor not discharged his obligation under law he shall be subjected to penal conseqenses under the respective Act. This is breif discription regarding these two terms, now you might have understood that these are two distict terms which cannot be distigushed or differenciated but both are interconnected. As far as VAT is conserned you have two options to pay your taxes, you can either opt for compounding or pay at applicable rate of tax claiming input tax if any as deduction towards tax payable. But for income tax tax is to be deducted at source at 2% on gross contract value, at the time of making payment, and education cess and additional education cess.
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what is the state wise VAT rates in INDIA |
what is the diffirence wetbeen WCT & TDS |