Sir,
in our factory one of the contractor is constructing the canteen building Building. Factory located in Andhra paradesh. Contract includes Matl+labour.so it will get effected by APVAT wct+Service tax wct.
in what way the bill should be.
suppose bill amount is 100
APVAT wct 5% on 70% of the bill 3.5
Service tax WCT 12.36% on 30% 3.70
is it correct.
Tax Clarification: 4.8% Service Tax on Total Contract, 5% APVAT on 70% of Bill under Notification No. 15/2012 A contractor constructing a canteen building in Andhra Pradesh is dealing with tax implications under APVAT and Service Tax. The initial query addressed the correct application of these taxes, suggesting a 5% APVAT on 70% of the bill and a 12.36% Service Tax on 30%. However, it was clarified that Service Tax should be 4.8% on the total contract value. Further discussions included how these taxes apply in Maharashtra and under the reverse charge mechanism per Notification No. 15/2012. Additionally, the applicability of VAT and TDS under WCT was addressed. (AI Summary)