VAT & WCT ?

This query is : Resolved

vsns sharma (Querist)
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14 October 2008 We got civil contract for Rs.623 Lakhs in MP.
My boss asked me the impact of VAT/WCT? How can We benefit from this?
I arraived material cost of 400 lakhs & Service Cost of 223Lakhs.
Here VAT tax applicable in case of Purchase. How WCT appIicable incase of Monthly Billing to Claint.Pl anybody help me how to go about it?

vsns sharma

vsns sharma (Querist)
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14 October 2008 We got civil contract for Rs.623 Lakhs in MP.
My boss asked me the impact of VAT/WCT? How can We benefit from this?
I arraived material cost of 400 lakhs & Service Cost of 223Lakhs.
Here VAT tax applicable in case of Purchase. How WCT appIicable incase
of Monthly Billing to Claint.Pl anybody help me how to go about it?

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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15 October 2008 Your Contract Value = Rs.623 Lacs

Your Employer will deduct WCT =25 Lacs

Assume you will pay the VAT in local purchase of materials from MP @4% of 400 Lacs i.e 16 lacs

So , you will get refund of

WCT deducted - VAT Paid that will come approximately 9 lacs.

There is service tax aso in your case

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