service tax on works contract


This query is : Resolved 

11 November 2010 I have received work contract of fired heater in BINA OIL REFINARY I have availed composition and paid 4.12% service tax. Service tax department given notice to deposit service tax @10.3% department view that this contract not comes in works contract. In the last year audit is already conducted. There is no objection raised.

12 November 2010 The detaisl of the contract, whether paying VAT as a worsk contractor, method of billing may alll be relevant to prove your stand.
As long as materials also used and billed together the demand of 10.3% is invalid and maybe just a measure of creating a value for nuisance.

14 November 2010 Please provide the copy of agreement of that contract,copy of tender if it shows the nature of work contract you can same take in your defance.


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