What rate of s.tax applicable on work contract?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 April 2013
Dear All,
Pls clarify the WCT percentage and service tax percentage on total work contrct?
Thanking you,
Pls clarify the WCT percentage and service tax percentage on total work contrct?
Thanking you,
CA Vikas Acharya
(Expert)
25 April 2013
SERVICE TAX
FA12, Rule 2-A,
option 1.: computation method
Value of Service = GAC-Value of property in goods
[GAC does not include Sales Tax.
a.)Value of Goods = Actual Value On which Sales tax paid/payable
b.)value of Work Contract = All contract related cost + related profit]
Option 2: abatement method
following % of total amount charged is taxable
In case of original contract 40%
In case of MRRR of any GOODS 70%
Other than above two( eg: glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property) 60%
Remaining is abatement..
Total amt charged is Gross Amt Charged +FMV of all goods & services given by SR in relation to that – Amount charged by SR for the same including vat if any.
WCT differs from state to state, its 4% in UP
FA12, Rule 2-A,
option 1.: computation method
Value of Service = GAC-Value of property in goods
[GAC does not include Sales Tax.
a.)Value of Goods = Actual Value On which Sales tax paid/payable
b.)value of Work Contract = All contract related cost + related profit]
Option 2: abatement method
following % of total amount charged is taxable
In case of original contract 40%
In case of MRRR of any GOODS 70%
Other than above two( eg: glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property) 60%
Remaining is abatement..
Total amt charged is Gross Amt Charged +FMV of all goods & services given by SR in relation to that – Amount charged by SR for the same including vat if any.
WCT differs from state to state, its 4% in UP
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