Works contract

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Harish (Querist)
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22 August 2016 Dear Sir,
I'm a Interior Decorator (Original Works) From Karnataka. I Billed For a Pvt Ltd Company in Composition method ( I Don't know the exact value of materials). i adopted 60:40 ratio (I'm not sure whether it is right or wrong) as follows.
Gross Amount (material + labour) 10,00,000
Vat Part 60% (600000*14.5%) = 87,000
Labour Part 40% ( 400000*15%) = 60,000
I have Input of Labour (Cenvat Credit) tax is 5,000
My question is ---
1) Vat 60% & S.tax 40% on gross amount is right or wrong (some people are saying vat part is 70%) ?
2) Under reverse charge mechanism my part is Rs. 30,000 right ?
3) Can i claim Cenvat credit or not (i.e., S.Tax Payable is 60000-30000-5000=25000) ?

Kindly help me...
Pls Revert to my e mail id harishassociates8@gmail.com

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 August 2016 1 Vat part is 70% for civil works and for Service tax 40%.
2 You are right under reverse charge your part is Rs 30,000.
3 Yes cenvat credit can be claimed.

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Harish

Harish (Querist)
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23 August 2016 Thank you very much Sir...
Sir, Can i get the Commercial Tax & Service Tax notification number for 70:40 ratio of Interior works contact.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 August 2016 For service tax it will not fall under original work for which only 40% applicable. Such interior decoration works service tax payable on 70%. See the service tax abatement chart of www. taxguru.in.

Harish

Harish (Querist)
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23 August 2016 Then Should i charge as follows:
Vat - 10,00,000*70%=7,00,000*14.5%=1,01,500
S.Tax - 10,00,000*70%=7,00,000*15%=1,05,000
Is this right..?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 August 2016 Yes it is right.............

Harish

Harish (Querist)
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24 August 2016 Thank You sir....................

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