Difference between service wct and vat wct

  A works contract involves use of both labour and services along with material. The labour and services are related to Service Tax and material part is related to VAT.........MJK

Vat (WCT) and Service Tax (WCT) Both are Diffrent.

Vat is Collected by State Government it does not Consider Service Tax Rules as 40% part for Service tax and 60% for Material.

Each State has its own rule on Vat Wct........... In Bihar Certain Deduction are given from Gross Revenue in Case of Work Contract.............

1. Labour Charges

2. Wages

3. Expenses on Planning

4. Store Consumable

5.Other Expenses Directly Incurred for WC

6.Labour Welfare Expenses, 

7. Profit Proportion to Contractors

after Deducting above expenses we got Net Revenue,  after that we divide net revenue in proportion to Material Used in Construction i. e. 13.5% and 5% and Charge Vat on proportinate Amount. and we get Output Vat Tax

After that we Deduct Input Tax Credit and TDS-WCT and Reached at Vat Payble

Thanks

Dear Sir,

There is a one Piping project,

Its material + service complete Supply, Installation, Testing and Commissioning (SITC)

How much %Ge VAT to be filled up for eg Bill will Be Rs 5,00,000/- + Service Tax 40% 24720/- Total is 5,24,720/-

All the Material purchased is 5%

Kindly guide