Rate applicability in composite scheme, Service Tax

[Anup Kumar Grover]

A company is engaged in the construction of residential building (consisting 4 flats), carried on as construction contract including materials, what is rate of tax in normal and under composition scheme, if possible prescribe the required procedure

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[Dinesh Gupta]

If you are talking about service tax, the rate of service tax is 10% in normal course if you opt for deduction of material value from the gross amount. If your opt for composition scheme the rate of tax is 4%. For new contracts, to avail composition scheme you need to include the value of free material used in the civil work.