Service tax under Works contract

[Srivatsan Krishnamachari]

Dear Experts,

I need clarification on below issues related to Works contract & Service tax.

a) How to calculate WCT (VAT) payable in the works contract scenario, under composition scheme and non-composition scheme

b) Benefits in Composition and in non-composition schemes

c) What is the service tax amount i need to pay and how to calculate the same.

d) Do i need to submit any forms before execution of the works contract to Sales Tax dept.

e) Any other useful info related to the WCT & SERVICE TAX.

Thanking you in advance

Regards

Srinivas

AI Summary

Clarification on Works Contract Tax: Service Tax, VAT, and Abatement Details Explained for Composite and Labor Services A user sought clarification on service tax and VAT related to works contracts, asking about calculating Works Contract Tax (WCT) under different schemes, benefits of these schemes, service tax payment, and necessary submissions to the Sales Tax department. Respondents advised that specific answers depend on the contract's terms. They noted that in composite projects, a 60% abatement applies to original works, with service tax on 40% of the service portion, split equally between service receiver and provider. Pure labor services fall under different categories without abatement. The discussion emphasized the complexity and ongoing debates in this tax area.