Service Tax Works Contract Tax Valuation under Rule 2A(1)

This query is : Resolved

Rajendra Prasad (Querist)
Follow

09 June 2010 Hello sir,

We have received advance against Works Contract of Rs.10,00,000/-.We are calculating Service Tax payable, under the Service Tax Valuation Rule 2A(1). Under this how to calculate the taxable value and Tax Amount.

Please guide me.

Rajendr Prasad.

Sumit gupta

Sumit gupta (Expert)
Follow

10 June 2010 material on which vat is paid need to b subtracted from 10lac then on the rest amt u can charge s.tax. bt vat should have been paid on actual basis not on composite scheme basis. and if u want to pay s tax on composite basis u need to pay 4% of 10lac plus any other material given by service receiver.

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

10 June 2010 Assuming that you have opted for Composition scheme, the tax liability shall be:

4.12/(100-4.12)*Rs. 1000000 = Rs. 42,970/-

As the amount is received in advance, it is assumed that the deduction towards VAT actually paid is nil.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SARAVANAN PALANISAMY

GST Karimnagar state

Darshan

Krishnamohan Gangaraju

CA Bijo scaria

Subscribe Now

Service Tax Works Contract Tax Valuation under Rule 2A(1)

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA