SERIVICE TAX AND WCT

This query is : Resolved

Divya Goyal (Querist)
Follow

13 April 2011 Hello everyone,

I had this query:

In my company, we have to take an AMC on Air conditioner.
The service portion is 54%.
could you please clarify the taxability on this contract.
Is it say on Rs 100 basic charge
Service tax @ 10.3% on 54% = 5.56
Composition tax @ 4.2% on basic price + service tax = 4.2% *(100+5.56) = 4.43

hence total amt inclusive tax = 110

Is WCT chargeable on Service tax also?

Kindly clarify is the tax calculation correct or not.

Thanking you in anticipation.

Regards
Divya Goyal

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

13 April 2011 NO VAT on ST or vice versa.
The value of services if 56 then ST @ 10.3% on that. This is assuming that the material cost is 44%. Dedcution under Not. 12/2003 is available in such a case.

Divya Goyal

Divya Goyal (Querist)
Follow

13 April 2011 Respected Sir,

First my company falls under service tax exempt category.

secondly i wanted to ask how much compositre tax will be charged.

The bidder in my case is charging 4.2% of total basic price + service tax i.e. 4.2%*(100+10.3%*54%*100) = Rs 4.433

Is his way to charge tax correct?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

23 July 2025 https://docs.google.com/document/d/1aPRUnfoWZxguCmLS4OueaFCbG0jzduCMTOvajNPNc18/edit?usp=sharing

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Anoop KK

Ravi

HITESH NIRANJAN SAHU

kambamcr@gmail.com

siddhesh satardekar

Subscribe Now

SERIVICE TAX AND WCT

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

CA Final

GST CONSULTANT

Accountant

GST CONSULTANCY