TaxTMI 
TaxTMI 
ST on works contract
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....T on works contract<br> Query (Issue) Started By: - Mohammed Lakkadsha Dated:- 6-11-2010 Last Reply Date:- 17-11-2010 Service Tax<br>Got 2 Replies<br>Service Tax<br>If I am executing a WCT contract li....
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....able to taxed under MVAT @ 8% of Gross Value of works contract. Since the above contract is also taxable under WCT catgof ST , I opted for option A , which leads to Gross taxale value under ST at NIL.....
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.... Whether above calc is correct. Reply By Brijesh Verma: The Reply: No, when sales tax (MVAT) has been paid on the gross value at a particular rate even then service tax is applicable. To be more prec....
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....ise, payment of VAT on full amount at a particular rate (composition) would not change the transaction to a 100% sale activity. If there is an element of service also involved, then service tax become....
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....s applicable and Rule 2A of valuation rules comes into play and reverse calculation would be done. We need few more details for a more specific answer. On the basis of available info, we have opined t....
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....o the best of our knowledge. Reply By Surender Gupta: The Reply: You have to pay service tax on the service portion either by following Rule 2A or composition scheme. payment of 8% under composition ....
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....scheme on the whole contract value is not eligible for deduction 100% from gross value and in such case, the best option would be composition scheme in which 4% is to be paid. Therefore, the views exp....
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....ressed by Mr. Brijesh Verma are absolutely correct.<br> Discussion Forum - Knowledge Sharing ....