Material value under CST in case of works contract

[umesh kumar]

Dear Team,
 
Please guide me on following issue:-
 
Can we apply standard deduction method (which is as per state VAT) for ascertaining material value  in case of Interstate work contract (CST being charged) because there is no % defined in the CST?
If No, what would be amount for CST on 100% bill value (material plus labour)
If Yes, please provide reference in CST like notifiction, section, rules et

Thanx

AI Summary

Clarification Sought on Applying Standard Deduction for Material Value in Interstate Works Contracts Under CST Rules A user inquired about applying the standard deduction method under state VAT to ascertain material value in interstate works contracts subject to CST, given the lack of a defined percentage in CST. The discussion highlighted that in interstate works contracts, CST is applicable only on the material value, not the labor portion. It was noted that the Central Government amended the CST Act in 2002 to include interstate works contracts, allowing states to levy CST on the material value in such contracts. The conversation emphasized the importance of contract terms and maintaining separate accounts for goods and services in divisible contracts.