Respected Seniors,
We are running a Construction Company and get registration under DVAT Act under composition scheme and also registered with Service Tax Department under Work Contracts. Suppose we get Rs. 1,00,000/- from a client for our construction work we had done including material and labour than what will be our liability toward DVAT and Service Tax. Please guide us. Our calculation will be on payment received basis :-
In my opinion the calculation as under :- Rs. 1,00,000 / 107.94 (Service Tax 4.94 + DVAT 3+ 100) = 92,644/- (Net Amount) i.e. we get payment Rs. 1,00,000/- including Service Tax & Dvat
Service Tax = 92,644/ - X 4.94% = 4577/-
Dvat Wct = 92,644/- X 3% = 2779/-
Please give your opinion whether I am right or wrong ? Waiting for your reply , thanks in advance
CAclubindia
