https://www.taxtmi.com/article/detailed?id=1476 Taxation focuses on the service element of works contracts, excluding certain infrastructure contracts. Taxable value equals gross contract charges less the value of goods transferred; when VAT/sales tax is paid on actual goods value that amount may be deducted. If VAT is paid under a composite VAT scheme, the service element is determined by specified components including labour, subcontractor payments, design fees, hired machinery, consumables, establishment costs and related profit. A composition option permits discharge of service tax on the gross contract value, precludes input CENVAT credit, requires irrevocable election per contract, and bars artificial contract bifurcation. en-us Fri, 21 Oct 2011 22:12:29 +0530 Fri, 21 Oct 2011 22:12:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1476 Taxation focuses on the service element of works contracts, excluding certain infrastructure contracts. Taxable value equals gross contract charges less the value of goods transferred; when VAT/sales tax is paid on actual goods value that amount may be deducted. If VAT is paid under a composite VAT scheme, the service element is determined by specified components including labour, subcontractor payments, design fees, hired machinery, consumables, establishment costs and related profit. A composition option permits discharge of service tax on the gross contract value, precludes input CENVAT credit, requires irrevocable election per contract, and bars artificial contract bifurcation. Articles Service Tax Fri, 21 Oct 2011 22:12:29 +0530 https://www.taxtmi.com/article/detailed?id=1476