I am working in a construction company. We are constructing Boundary wall including supply of all required materials. We are under Composition Scheme of Work Contract of Service Tax. Suppose, we have submitted a Work Contract bill of Rs. 1,00,00,000/- inclusive of all taxes and duties. On which client has deducted WCT @ 5% i.e. 5,00,000/-.
What will be the Service Tax Liability:
1. (1,00,00,000/- - 5,00,000/- + Market Value of Land)/104.944*4.944 or
2. (1,00,00,000/- + Market Value of Land)/104.944*4.944.