Composition Tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 December 2010
Dear Sir
We have given a works contract to construct a factory shed, our total cost of contract is Rs. 26,00,00,000 for that we had paid Rs.5,00,00,000/- towards advance and as per agreement 30 % of the total contract amount has to pay to the contractor i.e.7,80,00,000 the contractor has raised a bill like this
release of progress amount i.e 30% of the total contract = 7,80,00,000.00
He added 4%as Compositiontax= 31,20,000.00
total = 8,11,20,000.00
less advance received = 5,00,00,000.00
total = 3,11,20,000.00
again he added work contract
service tax as 4% on 2,80,00,000 lakhs
i.e 11,20,000.00
and educ cess 2% 22,400.00
and sh cess 1% 11,200.00
total he billed 3,22,73,600.00
is this correct as we have to pay seperate composition tax @4% and work contract service tax @4%
please give me quick advice.
Regards
Rafiq
We have given a works contract to construct a factory shed, our total cost of contract is Rs. 26,00,00,000 for that we had paid Rs.5,00,00,000/- towards advance and as per agreement 30 % of the total contract amount has to pay to the contractor i.e.7,80,00,000 the contractor has raised a bill like this
release of progress amount i.e 30% of the total contract = 7,80,00,000.00
He added 4%as Compositiontax= 31,20,000.00
total = 8,11,20,000.00
less advance received = 5,00,00,000.00
total = 3,11,20,000.00
again he added work contract
service tax as 4% on 2,80,00,000 lakhs
i.e 11,20,000.00
and educ cess 2% 22,400.00
and sh cess 1% 11,200.00
total he billed 3,22,73,600.00
is this correct as we have to pay seperate composition tax @4% and work contract service tax @4%
please give me quick advice.
Regards
Rafiq
Rajesh Kumar
(Expert)
24 December 2010
No. The calculation is wrong.
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