DEBARAJ JENA (CA) (59 Points)
05 October 2008Whether WCT need to be deducted from service tax value included in gross value of work
For Exp: If a civil contractor renders service worth Rs.1.00 L and billed to including ST Rs. 1.04 L.
Whether the contrctee needs to deduct WCT on Rs.1.04 L or only Rs.1.0 L ?
Similar doubut whether TDS needs to be deducted from Rs.1.04 L or only Rs.1.0 L?
RICHA SHARMA
(CA )
(202 Points)
Replied 05 October 2008
hi
service tax is to be deducted on the gross amount charged. In the example cited by u the gross amount charges is Rs. 1.04 L hence service tax should be charged on Rs. 1.04L which works out to be Rs. 0.04 by using the below mentioned formulae -
(1.04*4%)/104
Please include the appropriate amount for education cess and SHEC in the above calculations
Moreover. TDS shall be deducted on the amount charged including service tax i.e. on Rs. 1.04L
ram udgar roy
(taxation)
(28 Points)
Replied 06 October 2008
hi
wct deducted before service tax & tds deducted including service tax
DEBARAJ JENA
(CA)
(59 Points)
Replied 06 October 2008
| Originally posted by :RICHA SHARMA | ||
| " |
Thanks Richa. We are doing the same. But this query arises in my mind, since we have to pay Tax on Tax. |
" |
CA V. Mohanakrishnan
(Chartered Accountant)
(401 Points)
Replied 13 October 2008
there is direction from the Board that TDS need not be deducted on the service tax component as it is a remittance to the authorities and not the income of the biller.
DEBARAJ JENA
(CA)
(59 Points)
Replied 03 November 2008
| Originally posted by :CA V. Mohanakrishnan | ||
| " | there is direction from the Board that TDS need not be deducted on the service tax component as it is a remittance to the authorities and not the income of the biller. | " |
Can you give the details of Board direction for quote (I can put it before my client about this)
| Originally posted by :DEBARAJ JENA | ||
| " | Whether WCT need to be deducted from service tax value included in gross value of work For Exp: If a civil contractor renders service worth Rs.1.00 L and billed to including ST Rs. 1.04 L. Whether the contrctee needs to deduct WCT on Rs.1.04 L or only Rs.1.0 L ? Similar doubut whether TDS needs to be deducted from Rs.1.04 L or only Rs.1.0 L? |
" |
lingam
(Manager-Accounts)
(121 Points)
Replied 06 March 2009
Dear Sir,
I am a Transport Contractor , Whether Work Contract Tax is applicable to me or not, one of my customer has deducted TDS on WCT is it correct or not? if yes then how will i claim my TDS amount.
Please help
Thanks & Regards
Mr.Lingam
NITIN BHERE
(Manager Accounts)
(31 Points)
Replied 17 March 2009
Dear All,
I need WCT Challan in excel.
Nitin Bhere
CAclubindia
