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Discussion > Service Tax > rates >

Service tax rate in works contract

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[ Scorecard : 75]
Posted On 19 May 2012 at 15:20 Report Abuse

pls let me know the service tax rate in works contract after revision in service tax rate from 10.3% to 12.36%.


earlier service tax rate is 4.12% and now after revision what is the rate?

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Sonu Kumar
Account Manager

[ Scorecard : 584]
Posted On 19 May 2012 at 15:57

Dear Mr B Krishna.... New Rate is 4.944%

4.8% Service tax

2% Education Cess

1% Higher Education Cess

Total thanks : 4 times

Prateek Agarwal
Sr. Executive - Finance & Accounts

[ Scorecard : 1732]
Posted On 19 May 2012 at 16:31

Agree with above.


[ Scorecard : 6872]
Posted On 22 June 2012 at 13:42

If you are in composition scheme, the rate of service tax is 4.944% on total value.


rengaraj r.k

Total thanks : 1 times

Ajit kumar Dubey
Taxation Manager

[ Scorecard : 632]
Posted On 04 July 2012 at 14:37

I would like to bring into the notice that the composition scheme has been rescinded w.e.f 01/07/2012. Hence, one has to follow the rules as mentioned in Service tax (Determination of Value) Rules,2006. Now there in no such rate as 4% on a composite Works Contract.

Vinod Rakhecha
Sr. Executive-Accounts

[ Scorecard : 28]
Posted On 31 August 2012 at 08:50

Ajit sir,


Can you provide the notification or any circular regarding this

Deputy Manager

[ Scorecard : 304]
Posted On 31 August 2012 at 16:05

I agree with Mr. Dubey.  Compostion scheme was there earlier.  It has been rescinded.  Pls see 34/2012 ST notification.  Now composition % is given in the valuation rules, it may be 40/60/70% depends on the nature of the contract.  Pls go through the 24/2012 ST notification. 

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Member (Account Deleted)

[ Scorecard : 711]
Posted On 06 November 2012 at 19:05

please refer:

Anand Mohan

[ Scorecard : 45]
Posted On 07 November 2012 at 12:49

I agree with mr. dubey and also request you to go through 12 of the table annexed to 26/2012 which also talks about abetment of value on complex construction services of 75%.

It is all confusing in service tax. 

The central govt must come out with immediate clarification so that minor repairs upto Rs.30000 per bill are not covered in service tax. This reverse charge mechanism has just been added without giving any thought to the misery which it will cause to small and petty traders. Sometimes it looks that they did it just to save advocates from this service tax registration. The time has come when the govt drops any idea of discrimination between advocates and other professionals.

Perhaps they have covered everything under the sun in the definition of "works contract" if it is not covered by any other term.


Anand Mohan






[ Scorecard : 33]
Posted On 16 March 2014 at 23:31

It's 4.944% confirmed.

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