17 May 2013
In the state of Maharashtra there is standard deduction in work contract, so can we adopt the same in service tax as standard deduction mentioned in VAT act.
Rs.100/- is the Work contract value
then vat to be paid on Rs. 70/- and service tax to be paid on Rs. 30/- this can be treat as service value.
in the case of service tax, they also given the standard deduction 40%, 60%, and 70%.
but this is not the correct piture. goverment is taking the benefit of this. so I feel that standard deduction would be same in VAT act and Service tax act.
CAclubindia
