Service Tax & WCT on invoice

[Asked by 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

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.