TaxTMI 
TaxTMI 
As per rule 3(3) of Works Contract(Composition Scheme for Payment of service Tax) Rules,2007 dt 22.05.07,the taxable service provider who opts to pay tax as per these rules shall exercise such option prior to payment of s.tax. We need a clrification whether such excersing of option need to be filed with S.Tax Deptt. or simply on self basis without any formal intimation to Deptt.
Works contract (Composition scheme)
31 Jan 2008 
2 Replies 
1147 Views Asked by
Option to pay under composition scheme: starting to pay suffices; no formal filing required though some notify.
The document addresses whether the option under rule 3(3) of the Works Contract composition rules must be filed with the service tax department. It reports practitioners' consensus that no formal filing is required: commencing payment at the prescribed composition rate constitutes exercise of the option and entitlement should not be denied for non-filing, while some practitioners nonetheless prefer to notify the department for precautionary documentation. (AI Summary)
The document addresses whether the option under rule 3(3) of the Works Contract composition rules must be filed with the service tax department. It reports practitioners' consensus that no formal filing is required: commencing payment at the prescribed composition rate constitutes exercise of the option and entitlement should not be denied for non-filing, while some practitioners nonetheless prefer to notify the department for precautionary documentation. (AI Summary)