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.
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The Contractor is Charging APVAT @ 5% on the 70% correctly but Service Tax will be charged @ 4.8% on the total contract value.
Please get the bill corrected from the Contractor.
what % of vat/wct on what % of bil value wiil be chargeable, if the above canteen run in Maharashtra.Service tax will be same as 12.36% on 40% bill value
Accordingly to union Budget 2012 if Notification No. 15/2012 related to reverse charge mechanism is applicable then 50% service tax to be charge by the contractor and 50% service tax to be deposit by your good self, go to the Notification No. 15/2012
my query was for Vat ,not for service tax, please suggest for vat only.
Here, I would like to know, when the cost of material and labour is ascertainable, then on what amount the VAT and Service Tax will be chargeable.
if question is only for VAT then Ok, service tax and TDS under WCT will also applicable on above transaction.