Service tax in construction field

This query is : Resolved 

01 June 2013 if service tax is applicable in construction field, they why are we paying the VAT Compound 2% for construction field. we are a service provider, we will not raise the sale invoice. I have so many confusion in this matter. pls kindly reply.

17 June 2013 In the construction field, both service tax & VAT apply on bills, because the bills consists of both material & labour.

VAT compound scheme 2% paying for taking abatement under your state VAT act.


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