Service tax - work contractor towards erection fabrication

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..... 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 .....

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..... . Is this correct or 12% service tax should be applicable on 67%( 100-33) of bill value - Reply By Vijay Chitte - The Reply = In your case, Contractor can not be charge 4% as VAT on 33% value of wor .....

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..... ks 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 c .....

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..... an charge 12% service tax on total works contract. Vijay Chitte - Claris Lifesciences Ltd. - Reply By Ramanujam V - The Reply = works contract is not supposed to charge 4% VAT on 33% of value as 4% m .....

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..... ust 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 comp .....

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..... osition scheme on the gross value of contract minus amount of VAT/sales tax charged without having any input tax credit. - Service tax - work contractor towards erection fabrication - Query Started .....

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..... By: - Neeraj Garg Dated:- 18-5-2007 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementin .....

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..... dia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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