SERIVICE TAX AND WCT

This query is : Resolved

Divya Goyal (Querist)
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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)
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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)
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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?