Work Contract Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2011 Hello,
I am working under subcontract with Ramky Infrastructure Limited.

Recently we are working in Mumbai. Ramky got work from HDIL and Ramky sublet work to us including material. we take VAT registration from Maharastra VAT office. we also have service tax registration.
My Question is ::
Ramky is diducting 2% WCT from our Bill on total amount of the bill which we submit to them.
Example: total production cost of bill is Rs. 100 we add VAT of 5% on 67% of Rs 100 then we add Service tax of 10.30% on 33% of Rs 100. Total value of bill is 100 + 3.35 VAT + 3.40 Service Tax = 106.75

KIndly guide me is this method is right or not.

Also Ramky deducting 2% WCT from our whole bill which we submitted to them. I have doubt on it.... earlier we work in Gujarat.. Company was deducting 0.6% of Total bill amount - material value.

Kindly Guide me for the same

Thanks

Regards

Aditya Maheshwari

Aditya Maheshwari (Expert)
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25 April 2011 The rate of VAT TDS is 2% in Maharashtra. So it is correct. He will give a declaration / form showing credit which u can claim in the return.