Valuation of works contract services: option between gross-minus-goods method or composition rates; input credit restricted.

Taxable value of works contract services may be determined either by subtracting the value of goods from gross contract value or by electing a composition scheme that treats a prescribed proportion of the contract price as the value of taxable services; specified works contracts are defined by certain maintenance, repair and finishing activities, and providers are prohibited from claiming CENVAT credit on duties or cess paid on inputs related to the works contract.

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