Question ID : 1735

1884

to make my query more transparent, I am furnishg an example :-
For stance, works contract job is takg pce Delhi.
Delhi VAT Rate is 12.5% on 85% of Contract Value case of composite , divisible contract.
Service Tax is 10.2%
Say, Total contract value is Rs 1,00,000 (clusive of all taxes)
So, if basic price is X, then we can calcute the followg manner :-
X + X*33%*10.2% + X*85%*12.5% = Gross Amt
e.g. X = Gross Amt , 1.13991 = Rs 87,726
Accordgly, we can calcute service tax @10.2% on Rs 87,726. Is this procedure correct ? Here, we have elid other taxes to calcute service tax



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