https://www.taxtmi.com/forum/issue?id=4984 Three alternative compounding schemes are available for Works Contract Service: material deduction under the relevant rule, tax on a fixed portion of contract value, or a flat compounding rate; the taxpayer should perform a cost benefit analysis to choose. If materials are supplied free, their notional value is included in the taxable service amount. Reverse charge may apply depending on provider type. Revenue may seek aggregation of supply, erection and civil contract values where the same entity executes divisible contracts, but the taxpayer may still opt for any permitted compounding method and compute tax on the service portion. en-us Tue, 27 Nov 2012 10:07:17 +0530 Thu, 23 Jan 2025 15:57:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=4984 Three alternative compounding schemes are available for Works Contract Service: material deduction under the relevant rule, tax on a fixed portion of contract value, or a flat compounding rate; the taxpayer should perform a cost benefit analysis to choose. If materials are supplied free, their notional value is included in the taxable service amount. Reverse charge may apply depending on provider type. Revenue may seek aggregation of supply, erection and civil contract values where the same entity executes divisible contracts, but the taxpayer may still opt for any permitted compounding method and compute tax on the service portion. Discussion-Forum Service Tax Tue, 27 Nov 2012 10:07:17 +0530 https://www.taxtmi.com/forum/issue?id=4984