12 December 2015
there is a work contract of Rs 500000(no bifurcation of material and labour) by individual to body corporate in uttar pradesh. how to do calculation of vat service tax and tds in bill
OPTION 1
gross value 500000 TDS 5000 VAT@4% on 30% value 6000 Service tax @14.5% on 70% value 50750
OPTION 2
gross value 500000 TDS 5000 VAT@4% on full value 20000 Service tax @14.5% on 70% value 50750
which option is correct? whether vat is calculated on 30% value or on full value?