About work contract & rcm
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 October 2013
I was filed Service tax return for period Oct 12 to March 13 & It was rejected due to Advalorem Rate(point no. B1.15)So my question is that:
1.what is rate of work contract? (i was taken rate @4.944% still it was rejected)
2.How much amount to be taken in Service tax payable Under RCM (Point B1.6),100% or 50% of gross value of service provided.
1.what is rate of work contract? (i was taken rate @4.944% still it was rejected)
2.How much amount to be taken in Service tax payable Under RCM (Point B1.6),100% or 50% of gross value of service provided.
CA Suresh Jain
(Expert)
02 October 2013
It looks that you are calculating service tax on original works contract @ 40% of 12.36%.
The correct way is to calculate value of service in works contract @ 40% of total value of works contract and apply service tax rate of 12.36%.
If RCM is applicable then rate of tax would be 6.18%
****For clarification and Premier service pl contact group.blr@gmail.com
*Disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case.
The correct way is to calculate value of service in works contract @ 40% of total value of works contract and apply service tax rate of 12.36%.
If RCM is applicable then rate of tax would be 6.18%
****For clarification and Premier service pl contact group.blr@gmail.com
*Disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- Non filing of I T Returns
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Oct 2025 Invoices
- Import of Software Service.
- GST on Renting godown to KFCSC for Storage of Raagi
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- TDS on Fixed Assets purchased
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
