Material value under CST in case of works contract

[Asked by Guest]

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

Material value for CST determines tax liability in interstate works contracts; CST applies only to the goods component, not labour.
Interstate works contracts generate deemed interstate sales for CST: CST is chargeable by the State of dispatch and is payable only on the material value (goods component) of the contract, not on labour. If the contract is divisible or separate accounts for goods exist, CST may be charged on the identifiable goods value; in indivisible contracts the State of dispatch may still collect CST on material value, with recent amendments clarifying deductions to compute that value.