TaxTMI 
TaxTMI 
whether notification no 1/2006 regarding abaitment 67% of material is available under work contract scheme if non composition scheme availed and material amount can not be specified. if yes under which rule
abaitment under service tax on work contract
23 Dec 2011 
2 Replies 
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Abatement under service tax for work contracts available where composition scheme is not chosen; permits presumptive valuation of materials.
The statutory abatement for work contract services provides a presumptive reduction in taxable value for materials where the composition scheme is not elected, and functions as a practical valuation method when material value cannot be ascertained; an earlier conditional abatement notification may also apply subject to its conditions. (AI Summary)
The statutory abatement for work contract services provides a presumptive reduction in taxable value for materials where the composition scheme is not elected, and functions as a practical valuation method when material value cannot be ascertained; an earlier conditional abatement notification may also apply subject to its conditions. (AI Summary)