service tax and works contract
This query is : Resolved
Snehal Parikh
(Querist)
18 June 2008
My client is providing construction activities to company registered & situated in madyapradesh. The client is charging service tax at 4% plus education cess on gross amount ( material plus service). But the company deducts 2% works contract tax plus education cess on payment made to my client. They refused to pay service tax.They argued that service tax is not chargeable on bill amount. My questions are as follow :
1 wct and service tax, both are applicable on bill amount or not ?
2Whether my client is entitled to take credit of works contract tax deducted by company in any act or not ? ( for example : vat, service tax or wct act )
3If service tax and wct, both applicable on bill amount, then my client is req to revise bill and charge both service tax and wct on basic amount of bill or not ?
4 It is not possible for my client to separately identify the amount of service and materials in gross amount charged in bill.
Please immediately reply as early as possible.
Thanks,
1 wct and service tax, both are applicable on bill amount or not ?
2Whether my client is entitled to take credit of works contract tax deducted by company in any act or not ? ( for example : vat, service tax or wct act )
3If service tax and wct, both applicable on bill amount, then my client is req to revise bill and charge both service tax and wct on basic amount of bill or not ?
4 It is not possible for my client to separately identify the amount of service and materials in gross amount charged in bill.
Please immediately reply as early as possible.
Thanks,
CA BHARATH KUMAR
(Expert)
16 July 2012
if he registered in VAT . it should be applicable taken 4% service tax remaining treated as VAT
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