Hi.......
Assessee is a contractor supplying labour and material to builders, where he use to charge Vat and Service tax appropriately, but some builder issuing payment deducting W.C.T and some of not,
Detail as below
Sales labour with material to a Rs. 500000/-
Add Service Tax @ 12.36% at 40% with rivers mechanism Rs. (500000*40%)*12.36%=24720/2=12360
MVAT @ 5% (500000*5%)=25000
Total bill = 500000+ 12360+25000=5,37,360=
Payment received from A.
Bill Amount Rs. 537360
Less TDS 1% = (537360*1%)=5374
Less Retention. 10% (537360*10%)Rs. 53736
Less WCT. 2% (537360*2%)=10747.00
Net payment Rs. 467503.00
VAT payable Rs. 25000/-
Less Purchase VAT . (200000*5%)Rs.10000/-
Less WCT. Rs. 10747.00
VAT Calculation Rs. 25000-20747=4253.00
Net payable . Rs. 4253.00
Is this the right calculation?
If yes then what about those bills which payments are till due.
Please suggest…………
Rashmi
CAclubindia
