TMI BlogService tax on Works contract-regX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, When we execute the Turnkey contract ( EPC contract ) and the price for each activities are given seperately like; Design Engg, Supply, Erection and Civil works. Can we opt the payment of service tax under composition scheme only for Civil Works and remit the service tax @ 10.3% on Design Engg and Erection.?. My understanding is that, once the tax payable under composition scheme, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have to pay @ 4.12% on the Total value of the contract includes Design, supply , erection including civil works. Civil works alone not eligibile for Composition scheme. Is it correct?. Pl clarify. N.Balachandran - Reply By daya singh - The Reply = Yes, the composition scheme would be available only to such works contracts where the gross value of works contract includes th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e value of all goods used in or in relation to the execution of works contract whether received free of cost or for consideration under any other contract. - Reply By ANAND SHEMBEKAR - The Reply = Yes works contract service which includes EPC contract also. You can take cenvat credit of services availed for providing the WC service even you are paying ST under composition scheme of 4.12% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thanks ANAND SHEMBEKAR CELL 9421187122 - Reply By N Balachandran - The Reply = Thanks for ur clarification. - Reply By Aliasgar Tambawala - The Reply = To the best of my knowledge, under composition scheme Service Tax is 3.43% and not 4.12%. - Reply By PRASANTA KHATAI - The Reply = Dear Mr.Aliasgar Tambawala Can you plz.elaborate as to how under composition scheme Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice Tax is 3.43% and not 4.12%. - Reply By YASHAVANTH RENUKA MANJUNATH - The Reply = Mr. Balachandran, The provision of composition tax on works contract is merely for the convenient to the assessee for avoiding confusions, credit procedures, formalities, etc., If assessee wish to opt for composition tax in case of construction work / civil work which includes Land cost and other all type ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of costs on total value of the contract. The service tax is applicable on total value the contract @ 4.12% certain bifurgation like Design, Supplies, Erection etc., is not exempted. If we bifurgate the above costs in total contract it will be construed as single contract. Hence in my opinion civil works cannot be executed without material, plan, design, erection if required etc., single labo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur or single material contracts are not works contract. Conclusion : - If material involved with design, engineering, erection, material with labour in civil work, whether bifugatted or not will be treated as work contract ----if it isexecuted by single contractor and if it is issued to more than one contractor WCT service tax applicable only certain services @ 10.3%. - Reply By raj kumar shukl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a - The Reply = CERTAILY IT IS 4.12%. - Service tax on Works contract-reg - Query Started By: - N Balachandran Dated:- 1-2-2012 Service Tax - Got 7 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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