Set off amount under Composition scheme of WCT

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M Srijesh Kumar

Senior Accountant

35 Points Joined June 2009

We are a registered contractor under Orrissa VAT composition scheme. We have charged 4% WCT on 70% of Invoice value and 10.3% service tax on 30% of Invoice value.

I know, we can get full (100%) set-off against service tax but I have my doubt if I can get full (100%) set-off against WCT.

Can any one clear my doubt?

Replies (3)

MAHINDER

pract.

65 Points Joined July 2008

Originally posted by :M Srijesh Kumar
"	We are a registered contractor under Orrissa VAT composition scheme. We have charged 4% WCT on 70% of Invoice value and 10.3% service tax on 30% of Invoice value. I know, we can get full (100%) set-off against service tax but I have my doubt if I can get full (100%) set-off against WCT. Can any one clear my doubt?	"

Vijay D

Finance Executive

227 Points Joined August 2009

Hi Srijesh,

It seems that you are not follwing VAT composition scheme because as per my understanding in VAT composition scheme we have to pay VAT on 100% order vaue instead of 70%. Also note that in VAT composition scheme VAT credit is not available.

Better if you consult any expert & clear the picture.

Regards

Vijay D

manish garg

Article

31 Points Joined April 2011

hi srijesh

if you are not not adopting the composition scheme for the WCT in that case you can take 100 credit of WCT paid but if you are paying WCT as per composition scheme no credit is available. i hope ypu got my point.

Manish