Service tax under composition scheme

CA Parag Shukla (Practicing Chartered Accountant)   (153 Points)

22 November 2012  

We have opted for Composition scheme under VAT in Chhattisgarh State, rate of VAT is 2% on Civil Works. We have raised a bill which includes only service component, no material is included in that bill. Now my query is that whether we have to charge service tax @ 4.8% (under composition) or @ 12.36%.

Thanks in advance