vat and service tax

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2010
what is implication of work contract in vat and service tax.

A clint of my office genrates his invoice as follows

Net invoice price
Add : - Service tax
Add ;- Vat or WCT ( I donot know)
--------------
Gross bill

then payment receive as follows

Gross bill
Less :- TDS
Less :- WCT
-----------
cash receive

sir please clear that there is how much percentage of vat and how much amount of gross bill is applicable for chargeable of vat. and how much percetage of service tax and how much amount of gross bill is applicable for charging of service tax.

and What is the deduction of WCT and what is legal compliance of deducting of WCT. and what is benefit for the receiver of deduction as WCT. and what shall the deductor has to pay the deducted WCT to govt. and what is the process of payment of WCT to govt. and what is the process for taking the benefit of deducted Wct for deductee. what is the document for above. please suggest me take a example

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

29 April 2010 While you are going under work contract service. you can opt either regular or composite scheme,while opting regualr scheme need to raise he bill material portion and labour portion separatly. but you opt composit scheme you can pay service tax on gross contract value on lesser percentage of tax (presenlty 4.12%) this is Work contract relates service tax issue

WCT totally based on your state VAT or WCT act which ever applicable and rates also specifed there. if the customer deduct the WCT the same you can get TDS certificate and utilise for your VAT or WCT payment

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