Wct applicability

This query is : Open

laukik (Querist)
Follow

18 June 2012 currently we are getting canteen facility from one of the canteen service provider. he is charging service tax and vat on bill amount. so pls. advice me is works contract tax provision applicable to him? if yes then by which rate?

Dayal

Dayal (Expert)
Follow

19 June 2012 Canteen service providers are under a composition scheme where they are required to charge a specific % of VAT.

In Maharashtra it is 5%.

Vat is applicable on the element of service tax as well.

Post 1st July it will be on net value.

laukik

laukik (Querist)
Follow

19 June 2012 Thanks.

currently he is charging vat at 12.5% on 50% of Invoice Value not on full value (Invoice Value + service tax).. is it right?

Upgrade to CAclubindia Pro. Subscribe Now!