Fact: A limited company engaged in providing Tower Installation Services by using certain materials which are ultimately transfer to the contractee. As the installation service includes the transfer of property in goods, the company is charging VAT @ 12.5% on 80% of the Gross Amount Charged (Including Material) according to the provisions of DVAT. As per DVAT provisions 20% abatement will be available in case of composit work contract. Further, the company is charging Service Tax after availing 67% Abatement under Nofn.1/2006-ST i.e. service tax is charged on 33% of the Gross Amount Charged. By following the above procedure, company is paying tax (both VAT and Service Tax) on 113% of the gross amount charged. Query: Can the company pay Service Tax on balance 20% of the Gross Amount Charged by following the Notification No.13/2003-CE or Rule 2-A of the Service Tax (Determination of Value) Rules 2006, rather than paying service tax on 33% of the gross amount charged.