Service tax rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2015 Dear all expert,
in the original work contract, whether st is applicable 12.36% or 4.944%

suppose if the contact amount is 100000 (included materials) and 60% abatement is available which means 40000/- is taxable.

plz. tell me, whether basic rate of ST will be applicable 12.36% or 4.944%

if 4.944% is there any formality and any restriction to charges to charges 4.944% ST.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 March 2015 For original works contract 12.36% service tax on 40 % of value is applicable.

Service tax has to be worked out as follows:

100000*4.944% or
40000*12.36%

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2015 Respected sir,
the contract value is 100000 and on 60% materials portion 5% vat 3000 so total amount is 103000/- but i want to know. if i charges 4.944% do i need to send two bill one for materials and secound for service portion, will 4.944% ST be including Vat amount.

and also is it an optional ST rate for us to charges in bill that we can charges one of them.......

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 March 2015 Single bill bill can be prepared. 4.944% ST excluding VAT amount.

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