banner_ad

Clarification reqd. on service tax - works contract

Notifications 1449 views 3 replies

Hi All,

With regard to the recent amendment in Service tax, require clarification on the following with regard to Works contract - original works;

 

i)  has the composition scheme been scrapped wef 1 July 2012? i.e. the option to pay service tax on 40% of the invoice amount? (the materials are all misleading)

ii) with the reverse charge mechanism in place, is the 50% borne by the service recevier to be paid of his/her pocket  or is that 50 % to be withheld from the service providers liability and paid on his behalf by the service receiver?

 

Thanks.

- Mike

Replies (3)

From 01-07-2012. for original contracts , 40% of the total amount charged is the value of service. Comsposition scheme of paying 4.8% of the conatrct amount has been scrapped w.e.f.01-07-2012. But effective rate is same. 50% to be paid by the service receiver can be withheld from payment if he charged entire tax on you.

Thank you

detail of works contract 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details