civil work contract

[Ram Babu singh]

How to calculate service tax and vat on work contract and what will be the rate of vat ?

AI Summary

Clarifying Service Tax and VAT on Civil Contracts: Original Works at 40%, Others at 70%, VAT Varies by State. A discussion on a civil work contract raised questions about calculating service tax and VAT. One contributor explained that the taxable value for service tax is 40% for original works and 70% otherwise. VAT rates vary based on whether a composition scheme is used. Another noted that VAT rates range from 5% to 15% and can be calculated based on actual material value or other methods. A participant highlighted that VAT rates differ by state, suggesting that more detailed information is needed for accurate advice.