Service Tax & WCT on invoice, Service Tax

[Sanjay Vasava]

Dear Sir,

I have received an invoice supply (Steel Plate MS) & services. Contractor has calculating service tax on basic value & WCT 5% on Basic + Taxable value. I am confuse how can consider and passing the bill.

Please explain.

Thanks & Regards,

Sanjay Vasava

Posts / Replies

[Sanjay Vasava]

Dear Sir,

Bill amount ₹ 8415281.00

Service tax 15% ₹ 504918.00

WCT 5@(70%Value Of Rupees. 8,920,197.86) Invoice Total Amount ₹ 9,232,406

Contractor has calculated 5% WCT on Basic Value + Service Tax. (In this matter i am confused) How can calculating WCT 5% on 70% Value.

Please explain.

Thanks & Regards,

Sanjay Vasava

[Sanjay Vasava]

Dear Sir,

This is in gujarat state. Please explain.

Sanjay Vasava

[Ganeshan Kalyani]

Your SAP team / IT team shall help you out in configuring the accouting system which will then help to pass the entry.

[Ganeshan Kalyani]

The tax codes are created by IT team which you can select while booking. The tax code will ensure accouting of correct tax.

[Sanjay Vasava]

Dear Sir,

My query is Work contract tax calculating on Basic + Service Tax amount. WCT laviable on both amount or only basic.

Please advice.

Sanjay Vasava

[Ganeshan Kalyani]

It will be on basic + service tax.

[Sanjay Vasava]

Dear Sir,

If we received supply + Services bill, how can calculate service tax & vat ??

I suggested to party in original work service tax levied on 40% value & Vat levied on 60%. Is it ok or not.

Please advice.

Thanks & Regards,

Sanjay Vasava