Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
 
Discussions Forum
Home Forum Service Tax
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.
 
← Previous Next →

Service tax - work contractor towards erection fabrication , Service Tax

Issue Id: - 448
Dated: 18-5-2007
By:- Neeraj Garg
Service tax - work contractor towards erection fabrication

  • Contents
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

Posts / Replies

Showing Replies 1 to 2 of 2 Records

1 Dated: 19-5-2007
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.


2 Dated: 2-6-2007
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.

1

Old Query - New Comments are closed.

← Previous Next →
Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version