Respected Sir,
Please clarify that under work contract composition scheme (Period 2010-11) service receiver make payment tentatively to service provider for work executed and party raised invoice for service tax at value of work executed plus material value.
Now please advise that how we have to make service tax return that what value we have to show in return and what about cost of material (free of cost) on which we have paid service tax
Guidance on Reporting ST-3 Returns for 2010-11: Handling Advance Payments and Free Materials in Work Contracts A query was raised regarding the preparation of the ST-3 return under the work contract composition scheme for the period 2010-11, specifically about how to report payments made to a service provider, including the value of work executed and materials provided at no cost. One response advised showing advance payments in column 3F(a)(ii) and free materials as consideration in kind or in a residual category. Another agreed and suggested using the Revenue Department's Return Preparer Scheme for assistance. A third response outlined how to report service tax based on whether it was paid at a normal rate or on the total amount. (AI Summary)
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