Works Contract Tax

[PONNADA B K RAVIKUMAR]

we are entered an agreeement for Amc of our Computers (through Residentail Engineers), last month the service provide charged Service Tax @ 10.3% on total bill value, where as this month thet are charged 30:70, 30% of bill value there are charging service Tax and again on total value of the bill value they are charges WCT @ 2.8%, can you pls confirm , is there any change in WCT , and from which date,

AI Summary

Dispute Over Service Tax and WCT on Computer AMC: Correct Scheme and Notification 12/2003 Discussed A query was raised regarding the application of Service Tax and Works Contract Tax (WCT) on an Annual Maintenance Contract (AMC) for computers. Initially, Service Tax was charged at 10.3% on the total bill, but later, a 30:70 scheme was applied, with Service Tax on 30% of the bill and WCT at 2.8% on the total value. A respondent advised that the 30:70 scheme is incorrect and suggested using notification no. 12/2003 to prove material costs. For services classified as works contracts, the composition scheme at 4% was recommended.