close x
Home > Experts > VAT > Computation under rule 58 of MVAT

Please Wait ..

to your account


Remember Me | Forgot your password?


Sign-up now

Join and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.

Alternatively, you can log in using:

Computation under rule 58 of MVAT (VAT)

Report Abuse
This query is : Open

Querist : Anonymous

( Querist )
05 November 2009

Dear All

We are doing the following activity-
We are purchasing drums from the market & filling it with chemicals supplied by the buyer & after filling of drums with their chemicals, it is sold to that particular buyer only.
We have set up the automatic filling machine in the buyer's premises & the activity is carried out with some labour which are required to move drums.
Now the question arises that whether this amounts to WCT or not. In our opinion it is a WCT since both the labour & material is involved in it.
We are charging WCT as well as Service Tax.
WCT is charged on the 75% of value of the sale.
But now Sales Tax Dept is denying 25% deduction & are saying that it should be calculated under rule 58. But there are no clear guidelines about how to arrive at the profit figure from the said contract under rule 58.All other figures can be arrived at easily since the accounts are maintained & the data is readily available.
We are not doing any other business.
So kindly help

Thanks in advance



You need to be the querist or approved CAclub expert to take part in this query .

Click here to login ( Members Login ) now

Similar Resolved Queries :


Quick Links

back to the top