Works contract under service tax
This query is : Resolved
Praveen Kumar K
(Querist)
12 June 2013
Dear Sir,
1. In case of Works contract there is specific provision in TNVAT that where composition scheme is availed, VAT cannot be collected from the purchaser, i.e VAT cannot be shown as a component in the Invoice.
2. Under Service tax is there any specific provision. i.e If under Works Contract of original Works if 40 % composition scheme is opted for can the service provider of the same charge it in the invoice and collect the same from the Service Recipient.
1. In case of Works contract there is specific provision in TNVAT that where composition scheme is availed, VAT cannot be collected from the purchaser, i.e VAT cannot be shown as a component in the Invoice.
2. Under Service tax is there any specific provision. i.e If under Works Contract of original Works if 40 % composition scheme is opted for can the service provider of the same charge it in the invoice and collect the same from the Service Recipient.
12 June 2013
The service provider can charge 4.944% in their invoice. Plese note that 'works contract (composition scheme for payment of service tax ) Rules,2007' is done away with vide notification 35/2012-ST dated 20-06-2012 w.e.f 1-7-2012. Even at the existence of the rule, collection was possible since collection was not banned in the said rules.
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