In an arrangement between a company (Say A Ltd.) and a subcontractor (Say B Ltd), (Assuming whole contract value is Rs. 1,00,000).B Ltd raises a single invoice bifurcating 30% as service portion and 70% as material portion. on 30%, B Ltd charges Service Tax and on the balance 70% it charges VAT.
Is it mandatory for A Ltd to deduct WCT apart from this? If yes, on what amount?
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