Work Contract Tax

Save Share

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2010 I would like to know about Work Contract Tax...?
as during audit i observe that a dealer is charging 22.36% as Service Tax + W.C.T ?

i futher elaborate the case
supplier providing us AMC service for 5Kva UPS(period nov.08 - nov.09) and on the bill it is charging Service tax + W.C.T @22.36 as written.

is W.C.T @ 10% was there at that period ?

Reply appriciated

BALU V

BALU V (Expert)

11 February 2010 WCT is a State levy in lieu of Sales tax. It is an optional composition scheme. Presumably the person is charging you with 12.36% of Service Tax and 12% VAT. I don't think WCT at 12% rate is available. Hence it should be ST + VAT

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2010

BALU V

BALU V (Expert)

15 February 2010 From February 2009 the ST rate was 10.3%. The VAT is obviously 12%. As per the service tax provisions the service provider has to charge ST on the gross bill raised. Howevver, the goods supplied while rendering such service, on which VAT is paid exempted. Hence, ST is payable on the portion of service rendered alone.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now