Applicability of Service Tax & WCT as per Rajasthan VAT

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Mandhir Yadav (Querist)
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11 February 2009
I want to known About WCT & Service Tax as per Rajasthan VAT. Our Co. Registered in India as a foreign co. and we received WCT exemption certificate hence wct applicable rate is 1.5% on us. We are registered under serviec tax in composition scheme(4%). we are the main contractor. Let's assume we receive Rs. 100 from our client including service tax @ 4.12% & wct 1.5%. than What is the correct amt. of service tax, WCT & Net contract value.

Please tell me. It's very-2 Urgent.

PARDEEP KUMAR AGGARWAL

PARDEEP KUMAR AGGARWAL (Expert)
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23 April 2011 Dear Mr Yadav,

Hope you have resolved your problems till now & just a few days back i became member of this club. I want to let you know that in case of VAT Exemption fee Scheme in Rajasthan, the main contractor has to pay 1.5% of gross receipts (including Service Tax). If your contract Value is Rs 100 then Service Tax would be Rs 4.12 (as 4.12% in case of WCT Composition scheme) and total Receipts would be Rs 104.12 & hence VAT Exemption fee will be Rs 1.5% of Rs 104.12 i.e. Rs 1.5816/-. Hope you got what law says.