Works contract

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Nishad S Dani (Querist)

14 November 2014 Whether Service Provider can opt both the options under works contract i.e to pay 12.36% on service portion and also to pay 12.36% on abated value (40%/70%)???

Amol S Joglekar

Amol S Joglekar (Expert)

14 November 2014 Can you please elaborate with numerical example. (Prima facie the answer is NO)

Nishad S Dani

Nishad S Dani (Querist)

14 November 2014 Suppose A Ltd. is providing services of construction which falls under the ambit of works contract for e.g borewell works, land levelling, erection & installation etc. and is paying service tax on 40% value of such services and there are other services of which value has been calculated differently in R.A bills and has paid 12.36% on total value. Means A Ltd. has paid ST taking both the options under same work order and in same Invoice. So is there any restriction to avail both the options???? As per my interpretation he can go for 1 option only but there is no such restriction to avail both the option.

Nishad S Dani

Nishad S Dani (Querist)

Amol S Joglekar

Amol S Joglekar (Expert)

14 November 2014 I am still NOT in a position to understand you. See what I understand is.....even if a person charges in the invoice/bill/RA bill...by whatever name called.....2 times or over rated VAT...it is to be remitted to Govt is for sure.
So? Charge the VAT with one method only....

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

14 November 2014 Can't adopt both methods for same work.

Nishad S Dani

Nishad S Dani (Querist)

14 November 2014 Thank you for the reply. I got the answer. From interpretation there are two methods from which service provider can choose only one.

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