Output tax in work contract tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 December 2012 I have got an order under work contract tax in the state of orissa. i have a sales tax registration there.
i need to know my total output tax liability on a wct sale. CST/VAT, service tax, tds.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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28 December 2012 Mr Author,
Out of the total receipts you have to deduct 30% labour charges and expenses, and on he balance amount calculate the tax liability as per the quantity and rate of various goods consumed in the works contract. Reduce the amount of tax already paid on their purchases from the purchase invoices. The net amount is payable by you to thegovt along with returns. If you have opted for composition of tax pay 5% on the total receeipts. No input tax credit available in this method. If the contractee deducts tax(TDS) from payments, theen obtain certificates for that and take set off on such deductions also. If any balance amount is due that may be paid. Or,if it is excess you may ask for refund or adjust the same against next month's paymnet of tax.....mjk

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2013 Thank u sir.. What would be the applicable service tax rate?

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MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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03 February 2013 It will be 4.78% in compoaition scheme, and 12.45% under normal scheme.However confirm these rates from others.......MJK