https://www.taxtmi.com/article/detailed?id=1816 Service portion in execution of works contracts is a declared service; valuation under Rule 2A treats the service value as gross contract price less the value of goods when VAT is on actual value, and prescribes deemed percentages where VAT is under composition. The service portion includes labour, subcontractor labour/services, design fees, hire of machinery, consumables, establishment costs and profit attributable to labour/services. Cenvat credit on inputs used in works contracts is disallowed to the provider. Notification exemptions, subcontractor continuity of exemption, reverse charge split liability for certain providers, and point of taxation transitional rules govern tax incidence. en-us Fri, 13 Jul 2012 18:18:43 +0530 Fri, 13 Jul 2012 18:18:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1816 Service portion in execution of works contracts is a declared service; valuation under Rule 2A treats the service value as gross contract price less the value of goods when VAT is on actual value, and prescribes deemed percentages where VAT is under composition. The service portion includes labour, subcontractor labour/services, design fees, hire of machinery, consumables, establishment costs and profit attributable to labour/services. Cenvat credit on inputs used in works contracts is disallowed to the provider. Notification exemptions, subcontractor continuity of exemption, reverse charge split liability for certain providers, and point of taxation transitional rules govern tax incidence. Articles Service Tax Fri, 13 Jul 2012 18:18:43 +0530 https://www.taxtmi.com/article/detailed?id=1816