01 July 2016
dear sir, my question is recently i received one inter state works contract invoice amount Rs 200000/- in that they claiming WCT 5% Rs.10000/-on total 200000/- and Service tax claiming 15% Rs.12000/-on 40% of bill value Rs.200000/- is it correct. please suggest me (contractor is telengana and contractee is karnataka)
01 July 2016
For execution of Original Works ST shall be payable on 40 % of the total amount charged for the works contract. On the same amount WC Tax will be charged as per prescribed rate.
CAclubindia
