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service tax @ 4% ???????

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(Querist)
18 February 2009 is there any provision to charge 4 % service tax on any bill , i have to make payment to a sub contractor, i have heard that i have to charge only 4.12% in respect of service tax.is it right???? if yes.plz help me in detail
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
18 February 2009 Example:- In respect of Works Contract Services covered u/s 65(105)(zzzza) and who opts for compounding there is a provision to levy service tax @4.12% on the entire contract value.
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