TaxTMI 
TaxTMI 
Service Tax on Works Contract
Laxmaiah Vanamamula
Dear sir, Any Exemption have from Service Tax on Works Contract Please give Notification or any other details, Thanking You, V.Laxmaiah.Sudhakar Polymers Limited
Debate on service tax exemptions for works contracts: Composition Scheme vs. Notification 12/2003-ST and Valuation Rules 2006. A discussion on the applicability of service tax exemptions on works contracts features a query about potential exemptions. A professional advises that under the Works Contract Composition Scheme, a 4% tax on the contract value is required, excluding tools and state taxes, without cenvat credit on inputs. Another contributor mentions an exemption under Notification 12/2003-ST for goods sold with documentary evidence. However, a third participant disagrees, stating that the notification does not apply to works contracts, suggesting two legal options: the Composition Scheme or actual calculation under Valuation Rules 2006, warning against risky interpretations. (AI Summary)