SERVICE TAX ON WORKS CONTRACT

[UMAMAHESHWAR HEGDE]

Kindly let me know how to valuate service in case of works contract

AI Summary

Service Tax Valuation in Works Contracts: 40% for Original Works, 70% for Repairs per Rule 2A, 2006 Rules. A query was raised about valuing service tax in works contracts. One response directed the inquirer to Rule 2A of the Service Tax Valuation Rules 2006, as amended by a 2014 notification. Another response summarized the provision, stating that the service portion in an original works contract is 40%, while for repair and maintenance contracts, it is 70%.