Calculation of vat & service tax under wct

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2011 Dear Friends,

can anyone explain the procedure for calculating the VAT and Service Tax under Works Contract Tax. Please consider the value of work contract is Rs.1,00,000/-. My concern is whether the VAT Calculation @ 4% on sum of (100000+ 4.12% of 100000) or VAT @ 4% on 100000 and ST @ 4.12% on 100000. Which one is the correct procedure.
please help me

Thanks & Regards,

Suman M.

VISHRUT

VISHRUT (Expert)
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29 August 2011 It will be liable under VAT only and hence require to chrage VAT @ 4% on same which will be Rs. 4,000/-

For further details follow the following article.

http://www.salestaxindia.com/htms/articles1.htm