As per Service tax rules 12.36 % tax is charged on labour part. However if client issues order which consist of supply and erection both, we charge composite service tax @ 4.944% of total order. My query is that
" a contract where quite a lot of items are issued free to us and we do installation of these free issue items. Which means contract has few rate for erection of free issue items and few rates are supply & erection . Undersuch circumtances, can we operate composite service Tax @ 4.944 % or not. If not why and what is tax service tax applicable
Regrads
Naresh
CAclubindia
