Service Tax on Civil Contractor

This query is : Resolved

Mihir (Querist)
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28 March 2008 MR. A is civil contractor. Turnover apprx 40 Lacs. Majorly engaged in residential civil works and interior work for corporate offices etc....whether he is laible to pay service tax?

If yes then can he be covered under works contract category and pay tax under composition scheme @4%. (Other Facts -He has taken registration under vat tax and he is paying tax @12.5%)

Gopalakrishnan

Gopalakrishnan (Expert)
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28 March 2008 1. He has to pay service Tax and hence get registered himself under the Service Tax Act.

2. He is also covered under the Composition Scheme.

3. Registration under vat does not in no way affect his service tax liability.

annapurna

annapurna (Expert)
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28 March 2008 A civil works contractor is liable to pay the service tax and can be registered under the Construction of residential complex or Works contract service. If he is registered under the works contract service, then only he is eligible for composition scheme. If he is registered under the VAT then he can deduct VAT paid from the total consideration when he is opting under composition scheme

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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29 March 2008 HE HAS TO GET REGISTERED WITH SERVICE TAX.

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