St in kolkata
This query is : Open
04 July 2012
how the ST is calculated in KOLKATA on WCT???
is it calculated on 55% of Bill??
is it calculated on 55% of Bill??
04 July 2012
Do you mean "ST" = Service tax?. If it is service tax then it is central levy applicable throughout india not specifically for kolkatta on wct. Before answering we need your clarification on the word "ST".
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04 July 2012
you means... Service tax is calculated on 55% of amount of bill through the india??? provided WCT is applied??
04 July 2012
Works contract is a composite service consists of labour and material. So, the Service tax liability for working out the taxable turnover (throughout india)is as follows:
Total value of the works contract:
See the new valuation rules for total value (Rule 2A of the service tax determination of value rules, 2006.
Then, minus the material cost as shown in the VAT Return and pay 12.36% on the balance turnover.
If material cost is not ascertainable, pay 12.36% on 40% of the total amount charged for the works contract for original works.
Original work means = new construction.
For other works contract 60% is the taxable turnover.
How you got 55%?
For more clarity, kindly go thro the relvant new notifications.
Total value of the works contract:
See the new valuation rules for total value (Rule 2A of the service tax determination of value rules, 2006.
Then, minus the material cost as shown in the VAT Return and pay 12.36% on the balance turnover.
If material cost is not ascertainable, pay 12.36% on 40% of the total amount charged for the works contract for original works.
Original work means = new construction.
For other works contract 60% is the taxable turnover.
How you got 55%?
For more clarity, kindly go thro the relvant new notifications.
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04 July 2012
my one client received advance from customer from kolkata. so, while calculating service tax, he calculated on 55% of advance received.
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