Wct
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 June 2012
dear sir
what is the procdure of wct calcultion of service tax,
why 40% of amount taxable?
please any one breif me
thanks
pandey
what is the procdure of wct calcultion of service tax,
why 40% of amount taxable?
please any one breif me
thanks
pandey
RENGARAJ R.K
(Expert)
25 June 2012
From gross amount of works contract service, whatever shown in vat return as material cost , the same value can be deducted straightaway and service tax is payable only for labour cost plus additional overhead as per the new explanation in Rule 2A. If the material cost is not ascertainable, then you have to pay service tax on 40% of the total receipt. This will work out as 4.8%.
Even if you go in the composition scheme, the same rate 4.8% will be worked out.
rengaraj r.k
Even if you go in the composition scheme, the same rate 4.8% will be worked out.
rengaraj r.k
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