I would like to have your kind attention please on the topic as follows:-
if Work Contract tax is charged on the agreed amount at the time of work contract agreement, which is the method for calculation wct in following options:-
1. WCT shall to be calculated on agreed amount + service tax amount charged already on Invoice 2. WCT shall to be charged only on agreed amt, excluding service tax amt mentioned in Invoice.....
12 April 2012
Mr Harvinder Kumar, WCT is charged on the material value and ST is charged on the service value. Divide the total receipts into the above two items depending on the amount spent on them and calculate WCT and ST on them...MJK
14 April 2012
Thank you very much sir for your kind reply..
It means if an amount of Rs. 50000/- collectively is agreed in work contract agreement, which includes services as well. At time of raising of Invoice, we will bifurcate the services from materials so as to calculate service tax and WCT will be calculated on the remaining amount i.e. material.
CAclubindia
