abhishek (CA Job) (35 Points)
22 November 2015
CA Aditya Shah
(Chartered Accountant Entrepreneur Ex Ernst & Young)
(1908 Points)
Replied 22 November 2015
In case of Works Contract, if we apply Rule 2A
Value of Service= Gross Amount charged (excludingVAT) - Value of Property in goods transferred on which VAT/Sales Tax is paid
Service tax to be charged on this value.
In case you opt for Presumptive basis,
Service tax shall be payable as per the applicable rate on 40% of the Total Amount charged for Works contract
Total Amount= Gross Amount charged +FMV of goods & services supplied - Amount paid by the Service Provider for such goods & services - VAT/Sales Tax
For further clarifications, please feel free to contact.
abhishek
(CA Job)
(35 Points)
Replied 22 November 2015
mithun patel
(Accountant )
(21 Points)
Replied 23 November 2015
What should be the treatment if we give composite contract to the vendor.
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 23 November 2015
The TDS deduction on VAT is a presumptive deduction and dealer can apply for refund while filing his return.
If 100 is value of contract then TDS where applicable could be Rs.4. service tax depening on the option choosed would apply as under:
1. Pay ST after deducting value of goods involved @ 14.5 on balance. ( documentary proof for value maybe necessary)
2. Pay ST on R. 40 ( 40% of Rs. 100) @ 14.5% if it is original works. or
Pay ST on 70 ( 70%) @ 14.5 if it is not original works.
Note: Where VAT is charged in the invoice then the ST need not be paid on the VAT part.
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