New User / Register | Bookmarks | Annual Subscription | Feedback |
Login: Stay
| Forget Password |
           
TMI - Tax Management India. Com  

Recent Discussionss:

Reverse Charge Mechanism interest on partners capital Section 51 of income tax Collection of Interest on delay payment from customer Mistake - Tds deposited in wrong tan stock transfer process Unsecured loan DVT and CST for unregistered dealer Capital goods removed after 10 years EXCISE DUTY
 
Discussions Forum
Home Forum Service Tax Month 5 2007 2007 (5) This
← Previous Next →
 

Service tax - work contractor towards erection fabrication - Service Tax

 
Issue Id: - 448
Dated: -18-05-2007
By:- Neeraj Garg
Service tax - work contractor towards erection fabrication
we are manufactures We are getting bill from our work contractor towards erection fabrication etc, with charging 4% Vat on 33% value of bill amount as well charging 12% service tax on full bill value . Is this correct or 12% service tax should be applicable on 67%( 100-33) of bill value
Post Reply
 
Previous Posts


Dated: - 19-05-2007
By: - Vijay Chitte

In your case, Contractor can not be charge 4% as VAT on 33% value of works contract, he can charge only service tax on 33% value of works contract, subject to condition that contractor should not be availed any Cenvat credit as per Notification 1/2006-ST. Otherwise he can charge 12% service tax on total works contract. Vijay Chitte - Claris Lifesciences Ltd.




Dated: - 02-06-2007
By: - Ramanujam V
works contract is not supposed to charge 4% VAT on 33% of value as 4% must be a composition basis and VAT @ 4% should be paid on total value. However, Service tax is payable on 67% value @ 12.24% with the CENVAT credit of inputs/input services or 2 % under optional composition scheme on the gross value of contract minus amount of VAT/sales tax charged without having any input tax credit.

 
 
Previous Next

 

what is new what is new

UpdatesKnowledge SharingSubscription CommunicationNewslettersMore Options




Go to Mobile Website Go To Top
© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.