Wct

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Jay (Querist)
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03 September 2013 I am an architect/ interior designer practicing in Pune. I do interior plus civil turnkey contracts. For a contract value of say 1 lakh, how much shud i charge as work contract tax to my client and how much shud be the service tax. I have yet not got a right reply as different tax consultants are quoting different formulas. I have taken both s tax and wct reg. Nos.
regards

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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03 September 2013 For the works contract of interior design and civil works both VAT and ST are attracted. VT is payable on material content of the works executed calculated at respective rates and quantities of the goods consumed. ST is payable on the labour charges and the establishment expenses. For arriving at the taxable amount you have to add the gross profit to the actuals.Some times 40%and 30% of the total recipts are taken as taxable for civil and other type of WCT while calculating ST.Gross receipts are taken for caculating VAT or ST under composition rates.5% for VAT and 4.12% for ST under composition schemes.For apartments there is also 1% VAT on the total amouts received.You should choose the scheme under which you want to pay VAT or ST..mjk

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