WCT

What is the rate of Service Tax on WCT and can you please explain about that

Replies (5)

The options available normally as under WCT entry are:

a. Value of materials transferred on which VAT paid can be deducted and on the balance 103% can be charged.

b. Composition scheme where on the gross value 4.12% is to be charged.

In both these cases the service tax credit on input services would be admissible and the cenvat credit on the capital goods also would be available 50% in the year of pruchase and 50% in the subsequent years subject to conditions.

Originally posted by :kurumetidhana
" What is the rate of Service Tax on WCT and can you please explain about that "


 

sir WCT is work contract cost and

if you are a dealer registered under the composition scheme in maharashtra state then wct rate is 8%

Yes, Mr. Madhukar is right, for detail plz refer related circular

My work is Civil Construction Work in Haryana as contractor. WCT Deducted by contractee on bill amount (inclusive of service tax) or without service tax (Work Done) amount.  Please reply urgently.

The valuation provisions in service tax are clear that the consideration for which ST is payable is after taking the deduction for VAT.

Conversely my view is that WCT deducted should be only on the basic amount and not including ST.

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