Matter of work contract
This query is : Resolved
Guest
Guest
(Querist)
31 October 2012
good evening sir,
i want to ask you about service tax on work contract. supoose we give a contract manoj contruction co.than sir when he will raised bill . than sir 1- he will add service tax 40% on material bill (execution of original works) as per changes from 1.07.2012 . 2-i will deduct 4.8%wct in his material bill. sir hare are example supoose material bill exclude service tax is 20 lakh 20 lakh*40/100=800000 800000*12.36/100=98880 this service tax amount he will add in their material bill. i will deduct wct 4.8% in this material bill. sir this service tax amount 98880 deposited 50% by service provider and 50% deposit by service receiver. sir please chaeck and sir reply sir
i want to ask you about service tax on work contract. supoose we give a contract manoj contruction co.than sir when he will raised bill . than sir 1- he will add service tax 40% on material bill (execution of original works) as per changes from 1.07.2012 . 2-i will deduct 4.8%wct in his material bill. sir hare are example supoose material bill exclude service tax is 20 lakh 20 lakh*40/100=800000 800000*12.36/100=98880 this service tax amount he will add in their material bill. i will deduct wct 4.8% in this material bill. sir this service tax amount 98880 deposited 50% by service provider and 50% deposit by service receiver. sir please chaeck and sir reply sir
31 October 2012
Yes in event of work contract bein "original work" service tax of Rs 49,440/- will be paid by service reciepient directly to Govt. Further Rs 49,440/- will be paid to the service provider.....
31 October 2012
my understanding about your query is as below:
1. Contractor is raising bill for work executed and adding 50% of applicable service Tax i.e. 12.36% of the 40% invoice value.
2. your gross amount payable is hence value of work executed and 50% of service tax.
3. you are deducting WCT on the above two amount.
4. you will pay net amount (1+2-3) and 50% of service tax payable to the Govt. A/c
If you are following above than it is correct.
1. Contractor is raising bill for work executed and adding 50% of applicable service Tax i.e. 12.36% of the 40% invoice value.
2. your gross amount payable is hence value of work executed and 50% of service tax.
3. you are deducting WCT on the above two amount.
4. you will pay net amount (1+2-3) and 50% of service tax payable to the Govt. A/c
If you are following above than it is correct.
31 October 2012
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