Service tax on work contract

Dear Members

One of my client is taken work controct , He is caluclate the service tax  below

Total work controcter - 275000/-

1 st Instalement payement recived - 1,85,000/-

2 nd instalement payement reiced- 50000/-, another balance amount is vat 9400(501) form,Tds 5500/-,prossing cahrges25100, 

He is caluclate the service tax - 185000/110.3%=167724*33.33%=55903*10.3%=5758 

50000/110.3%=55150*33.33%=18381*10.3%=1893

In the above caluclation is right or wrong, wrong clarified the above  caluclation

please clarified the above doute sir

Thanking you

G.O.REDDY

Replies (1)

1.Under the Work Contract Scheme of Service tax only 4.12% Tax is Charged. 

2. Service Tax is Not Charges on VAT Amount.

3. Taxable Amount will be the Gross Amount- Vat = Net Amount ie Taxable Amount

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