Valuation of works contract services: service tax applied to portion of gross contract value when goods and land are included. Amendments to Rule 2A prescribe that where the gross amount charged for a works contract includes value of goods and land or undivided share of land and separate valuation is not determined, service tax is payable on an apportioned portion of the gross contract value. The rule treats the gross amount as inclusive of goods and materials supplied or used by the service provider, and conditions application of the apportionment on non-availment of CENVAT credit and non-use of a specified service-tax notification; specialised provisos apply to certain residential-unit contracts.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Valuation of works contract services: service tax applied to portion of gross contract value when goods and land are included.
Amendments to Rule 2A prescribe that where the gross amount charged for a works contract includes value of goods and land or undivided share of land and separate valuation is not determined, service tax is payable on an apportioned portion of the gross contract value. The rule treats the gross amount as inclusive of goods and materials supplied or used by the service provider, and conditions application of the apportionment on non-availment of CENVAT credit and non-use of a specified service-tax notification; specialised provisos apply to certain residential-unit contracts.
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