Service Tax & WCT on invoice

[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

AI Summary

Clarifying Service Tax and WCT Calculation for Steel Supply and Services: Confusion on 5% WCT Application Explained A user is seeking clarification on calculating service tax and Works Contract Tax (WCT) for an invoice involving the supply of steel plates and services. The confusion arises from the contractor's calculation of WCT at 5% on the combined basic and taxable value, and whether WCT should apply to both amounts or just the basic value. Another participant suggests consulting the IT or SAP team for assistance in configuring the accounting system to ensure correct tax accounting. The discussion also touches on the appropriate tax application for combined supply and service bills, with a suggestion to apply service tax on 40% of the value and VAT on 60%.