Calculation in WCT

[madhavvan n]

under works contract tax in service tax how the service tax to be charged is this right Contract value Rs. 100 Less VAlue of property transferred Rs. 40 Less VAT Rs. 5 Net value for WCT ST Rs 55 Service tax @10 % on Rs. 55 ie Rs. 5.5 pls confirm

AI Summary

Calculating Service Tax in Works Contract: Rs. 55 Net Value or Opt for 4.12% Composition Scheme? A user inquired about calculating service tax under the works contract tax (WCT) framework, using a contract value of Rs. 100, with deductions for property transferred and VAT, leaving Rs. 55 as the net value for WCT service tax. An expert responded, explaining that Rs. 55 includes service tax at 10.3%, and advised dividing Rs. 55 by 110.30 and multiplying by 10.3% to find the service tax. Alternatively, opting for a composition scheme at 4.12% was suggested, with credit available for capital goods and input services under both options. Another user queried about the availability of service tax credit on inputs.