I am having problem in calculating WCT. Kindly solve my problem with the help of example given below.
Suppose in a Real Estate business one of the vendor has given us a Work contract bill containing Gross Value - 100000/- He has assumed 60% as Goods supplied & 40% as Labour services and charged vat @ 4% on Goods supplied and Service Tax @ 12.36% on Labour service provided.
i.e VAt amount comes to 2400/- (100000*60%*4%) & Service Tax comes to 4944/- (100000*40%*12.36%).
So his Bill value comes to 107344/-. Now kindly let me know wether WCT will be charged on gross value 100000/- or at 107344/-(inclusive of Tax).
As per my idea it will be on Gross Value. Kindly provide me with any written note if possible so that it can help me in discussion.
CAclubindia
