DEAR FRIENDS AND MEMEMER I HAVE PROBLEM ABOUT SERVICE TAX AND WCT CAN ANY ONE TELL ME WHEN WE CALCULATE THE WCT IN A WORK CONTRACT. HOW I CALCULATE THE VALUE OF THE SERVICE, IF I KNOW ONLY THE TOTAL CONTRACT PRICE?
Naveen Chandra (Accounts Officer (Receivables)) (44 Points)
08 December 2010DEAR FRIENDS AND MEMEMER I HAVE PROBLEM ABOUT SERVICE TAX AND WCT CAN ANY ONE TELL ME WHEN WE CALCULATE THE WCT IN A WORK CONTRACT. HOW I CALCULATE THE VALUE OF THE SERVICE, IF I KNOW ONLY THE TOTAL CONTRACT PRICE?
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 08 December 2010
Services provided in relation to execution of works contract is leviable to service tax w.e.f. 01.06.07 [section 65(105)(zzzza)].
Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 provides option to pay service tax @ 2% of the gross amount charged for the works contract. However, the service provider opting for composition scheme for payment of service tax should exercise the option prior to payment of service tax.
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