20 March 2010
Under service tax there are different provisions how to assess the amount on which service tax would be payable.In relation to that there is an abatement scheme available for different types of services. There is one more scheme related to work contract that is composition scheme.
I just want to get some clarification where we would apply composite scheme under service tax @4.12% would be payable and where we would apply abatement scheme of 67%&33% scheme to pay service tax.
Understand that 2nd option would be applicable purely in contruction services and where supply of machinery and errection services are involved then only this composite scheme would be applicable.