Service Tax & WCT on invoice

[Guest]

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

[Guest]

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

[Guest]

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.

[Guest]

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.

[Guest]

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

AI Summary

Work contract tax applied on contract value including service tax, requiring ERP tax-code configuration for correct invoicing. Whether Work Contract Tax is payable on the basic contract value alone or on the basic value plus service tax: the purchaser received a composite invoice (goods and services) where the contractor charged service tax on the basic value and computed WCT on the basic value plus service tax. The forum advised configuring ERP tax codes for correct accounting and stated that WCT is levied on basic value plus service tax; an allocation question between service tax and VAT for works contracts was raised but left unresolved.