Service tax on on-going works contracts entered into prior to 01.06.2007 - regarding

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....Delhi, Dated, 24th August, 2010.   To             Director General (Service Tax),             Director General (Central Excise Intelligence)                   Director General (Audit....

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....amely, Works contract came into effect) and were continued beyond that date: (i) While prior to the said date services like Construction; Erection, commissioning or installation; Repair services were classifiable under respective taxable services even if they were in the nature of works contract, whether the classification of these activities would undergo a change. (ii) Whether in such case....

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.... 3. As regards applicability of composition scheme, the material fact would be whether such a contract satisfies rule 3(3) of the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007. This provision casts an obligation for exercising an option to choose the scheme prior to payment of service tax in respect of a particular works contract. Once such an option is made, it is ap....