Work contract tax
This query is : Resolved
17 October 2011
Dear Experts,
If a party is issuing one bill for both material and services,than on what value Vat and service Tax will be Charged?????Please Reply Soon.And what will be implication regarding TDS.
Thnx in Advance
If a party is issuing one bill for both material and services,than on what value Vat and service Tax will be Charged?????Please Reply Soon.And what will be implication regarding TDS.
Thnx in Advance
18 October 2011
Mr. RK Singh,
If you are raising a combined bill,then you have to estimate the labour expenses involved in that work and pay Service tax at 10.3% on it..In some VAT laws labour is permitted to be estimated at a fixed percentage,for ex : 30% in civil works and 20% in others etc in Karnataka. If there is any such provision in your state vat act you can adopt that ratio also.Othrwise making approximate evaluation of labour cost is also permissible.
MJK
If you are raising a combined bill,then you have to estimate the labour expenses involved in that work and pay Service tax at 10.3% on it..In some VAT laws labour is permitted to be estimated at a fixed percentage,for ex : 30% in civil works and 20% in others etc in Karnataka. If there is any such provision in your state vat act you can adopt that ratio also.Othrwise making approximate evaluation of labour cost is also permissible.
MJK
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