WCT and Service Tax on EPC Contract

Page no : 2

Akhil (Chartered Accountant) (24 Points)
Replied 14 November 2009

1 party has charged VAT @ 4% under work contract act on 40% of the Assessable Value.

Further service tax @ 10.3% has been charged on the 100% Assessable Value. Is this can be possible??

Upgrade to CAclubindia Pro. Subscribe Now!

vasanti (Accountant) (24 Points)
Replied 17 February 2010

how to Calculate 8%VAT Set off in work contract?

If in case we purchase input vat @ 4% and input vat @ 12.5% & we charge to our customer 8%output vat .....how to get set off.......we get 100%set off in this case?

Sibapada Mukherjee (Accounts Executive) (24 Points)
Replied 03 February 2011

Dear Sir

First you clear me the defination of EPC . and also clear me if any principal hand over any to a contractor, the job which containts design & engineering , supply of all plat , machinery & equipment for site including commissioning spares for the work including performence test of all materials. how the contractor maintain the book for calculation of wct and service tax .

Kindly give me some expert advice in the view of WCT and Service Tax

Regards

Sibapada Mukherjee

e-mail- sibo_999 @ yahoo.com.in