Wct

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2012 dear sir
what is the procdure of wct calcultion of service tax,

why 40% of amount taxable?

please any one breif me

thanks
pandey

RENGARAJ R.K

RENGARAJ R.K (Expert)
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25 June 2012 From gross amount of works contract service, whatever shown in vat return as material cost , the same value can be deducted straightaway and service tax is payable only for labour cost plus additional overhead as per the new explanation in Rule 2A. If the material cost is not ascertainable, then you have to pay service tax on 40% of the total receipt. This will work out as 4.8%.

Even if you go in the composition scheme, the same rate 4.8% will be worked out.

rengaraj r.k