Service Tax on Works Contract

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..... Service Tax on Works Contract
Query (Issue) Started By: - Laxmaiah Vanamamula Dated:- 26-11-2010 Last Reply Date:- 1-12-2010 Service Tax
Got 3 Replies
Service Tax
Dear sir, Any Exemption have from Service Tax on Works Contract Please give Notification or any other details, Thanking You, V.Laxmaiah.Sudhakar Polymers Limited Reply By CA Rachit Agarwal: The Reply: Please refer Rule 3 .....

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..... of Works Contract Composition scheme where you will be required to pay 4% of the contract value. You will not be eligible to take the cenvat creit on the inputs. Further the Contract Value includes the value of inputs/ input services however excludes the cost of tools, machineries and other state level taxes. Reply By Ramanujam Varadarajan: The Reply: In addition exemption under Notification 12 .....

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..... /2003-ST on value of goods sold under the documentary evidence is available for all the services. Reply By Brijesh Verma: The Reply: Dear Friend, I am afraid that I don't agree with the contention of my Ld. Friend Varadarajan Ji. Benefit under notification 12/2003-ST is not available in case of Works contract Service. Legally only two options are available to WC Service Providers i.e. : * eith .....

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..... er pay tax under Composition Scheme under WC (Composition ) Rules 2007 [Notif. No. 32/2007] * or pay tax on actual calculation under rule 2A of the Valuation Rules 2006 So, in my view, since legally there are only two options, but the third one i.e. (paying tax on normal value after taking benefit of 12/2003 is absolutely risky.
Discussion Forum - Knowledge Sharing .....

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