Work Contract Tax

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..... My company worked as a Contractor and Vat & service tax both are applicable but my question is that what is the percentage of WCT. there are two options - 1. 67% of job Value vat is 12.5% and 33 % of job value service tax applicable 2. 80% of job value Vat is 12.5% and 20% of job value is service tax applicable. My question is what is better option which can apply and follow rules. My company .....

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..... deals with fabrication, erection and making of steel structures. please suggest me what I do? - Reply By pradeep khatri - The Reply = Dear Ranjan, First of all, please check the classification of the taxable output services Secondly, Do check all the possible exemptions/abatements you can avail i.e. whether actual deduction, abatement or composition scheme, which one is more beneficial to .....

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..... you. In my opinion you should opt for composition scheme for both Works Contract Tax under Service Tax and under VAT. But before opting for any scheme, just do your homework and cost benefit analysis. Regards, Pradeep Khatri - Reply By Rahul Sharma - The Reply = As per rules; STCC IS LEVIED @ 12.36% on 33%; So in that case12.5% VAT on 80% 12.36% on 33% both has to be levied. Ac .....

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..... tually VAT goes to State department 20% in abatement STCC is central Tax. I have been practising same from last one year; the only issue is Tally doesnot support this format. CAN ANYONE VALIDATE THIS!! Thx, Rahul - Work Contract Tax - Query Started By: - Ranjana Trivedi Dated:- 15-1-2011 Value Added Tax - VAT-CST - Got 2 Replies - VAT and Sales Tax - Discussion Forum - Knowledge .....

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..... Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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