Regarding works contracts
This query is : Resolved
23 April 2009
We are doing erraction & commisioning to various customers. I want to know the ratio for material portion and service portion.
Is there any standard percentage.
Is there any standard percentage.
23 April 2009
Value of work contract service determined shall be equivalent to the gross amount charged for the work contrct less the value of transfer of property in goods involved in the execution of the said work contract. (Only the value of goods used will be excluded nothing else).
However a person liable to pay service tax in relation to work contract service have the option to discharge the service tax liability on the work contract service provided, instead of paying service tax mentioned u/s 66 of the act, by paying equivalent to the 4% of the gross amount charged for the work contract. For the purpose of this rule, gross amount charged for work contract shall not include VAT or sales tax as the case may be, paid on the transfer of property of goods involved in the execution of the work contract service.
However a person liable to pay service tax in relation to work contract service have the option to discharge the service tax liability on the work contract service provided, instead of paying service tax mentioned u/s 66 of the act, by paying equivalent to the 4% of the gross amount charged for the work contract. For the purpose of this rule, gross amount charged for work contract shall not include VAT or sales tax as the case may be, paid on the transfer of property of goods involved in the execution of the work contract service.
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