saivarma (articles assistant) (127 Points)
27 January 2011While a service providing company like power station,Dams, the certainly charges WCT , but whle they purchase any material the are used to pay vat 14.5% , but when they sale , the consider Wct and it would be 2.8 % . then howcan it reasonable that Vat is 14.5% and WCT is 2.8%
Pankaj Arora
(Learner)
(3134 Points)
Replied 27 January 2011
Because this services comes under wct that’s why they charge 2.80% and 14.50% will be their input vat.
saivarma
(articles assistant)
(127 Points)
Replied 27 January 2011
That's What i am asking , How it justifies? the company may get loss due to collection of less tax.
Pankaj Arora
(Learner)
(3134 Points)
Replied 27 January 2011
There is no loss to co. because company is collecting wct tax on invoice so where is loss same is depositing too. And second one thing is input vat is higher than wct. At the time of input vat adjustment there will be no loss.
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