What rate of s.tax applicable on work contract?

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Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2013 Dear All,
Pls clarify the WCT percentage and service tax percentage on total work contrct?

Thanking you,

CA Vikas Acharya

CA Vikas Acharya (Expert)
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25 April 2013 SERVICE TAX

FA12, Rule 2-A,
option 1.: computation method
Value of Service = GAC-Value of property in goods
[GAC does not include Sales Tax.
a.)Value of Goods = Actual Value On which Sales tax paid/payable
b.)value of Work Contract = All contract related cost + related profit]

Option 2: abatement method
following % of total amount charged is taxable
In case of original contract 40%
In case of MRRR of any GOODS 70%
Other than above two( eg: glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property) 60%
Remaining is abatement..
Total amt charged is Gross Amt Charged +FMV of all goods & services given by SR in relation to that – Amount charged by SR for the same including vat if any.

WCT differs from state to state, its 4% in UP