Regarding composition rate of service tax
This query is : Resolved
16 August 2012
As per Service Tax (Determination of value) Rules,2006 Consideration of value under works contracts Now Composition rate of service tax @4.994%. The same has been how its come out from original work 40%. And now its only 4.994% or any other rates relavant under composition. please clarify as brief
16 August 2012
Please note that the composition rate is abolished. You have to follow the valuation rules under 2A.
After arriving the contract value, you have to deduct the material cost as shown in the VAT Return and you will get the taxable turnover and after the taxable turnover 50% of the taxable turnover attracts service tax 12.36% of the taxable turnover. And balance 50% of the taxable turnover, tax will be remitted by the service receiver under reverse charge mechanism.
The Rule also specifies that if you are not able to find out the material cost, 40% is the taxable turnover for new construction on the total value. You have to pay 50% of the Bill value as mentioned above. Please refer all the relevant notifications issued in the month of June 2012.
After arriving the contract value, you have to deduct the material cost as shown in the VAT Return and you will get the taxable turnover and after the taxable turnover 50% of the taxable turnover attracts service tax 12.36% of the taxable turnover. And balance 50% of the taxable turnover, tax will be remitted by the service receiver under reverse charge mechanism.
The Rule also specifies that if you are not able to find out the material cost, 40% is the taxable turnover for new construction on the total value. You have to pay 50% of the Bill value as mentioned above. Please refer all the relevant notifications issued in the month of June 2012.
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
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Regarding TDS Applicability For Director Remuneration
- LC charges in relation to Asset purchased should be Capitalised ?
- Transporter Declaration form
- FORM 26A APPLICABILITY
- Value of property in capital gain
- Copyright software
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
