Dear Sir, Material Cost @ 67% calculated on Taxable Amount and Labour cost 33% calculated on Taxable amount, service tax calculated on Labour cost (33 x 12.36% = 4.0788%). 4.0788% calculated on total Taxable amount.
For Example :- Material- 1,59,01,413 x 67% = 1,06,53,946.71.
Labour - 1,59,01,413 x 33% = 52,47,466.29
Service Tax - 1,59,01,413.00 x 4.0788% = 6,48,586.833
Service Tax - 52,47,466.29 x 12.36% = 6,48,586.833
Is it Correct or not???? please reply me sir
In case of indivisible contracts 67:33% ratio is no more. Composition scheme is also abolished. After negative list regime work contract is taxable under service tax in case of indivisible contract as below:
Valuation of Works Contract [Notification
24/2012-ST dated 6th June, 2012]
Alternate Rule
Descripttion of Service % of service tax
payable on total amount charged for contract
Original Works 40%
Maintenance or repair or
reconditioning or servicing of
any goods
70%
Other works contract –
Completion and Finishing
Services
60%
Dear Mr. ramesh Babu,
If You have got a fresh work Contract then You Will Get 60% abatment from gross revenue I.e service tax is payble only on 40% of revenue. if you are charging service tax on gross revenue then rate will be 4.8%( excluding Cess)
Tax Liability in Your case :-
Gross Revenue -15901413/-
15901413 X 4.944%=786166/- (15901413 X 40% X 12.36%)
Dear Sir,
I am from Tamil Nadu. I gave my car for bodyshop service to a dealer. Their Invoice split up is
Spare Parts : 2139.74
Vat : 310.26
Labour : 8550
Service tax : 1056.78
Vat on WC : 740.95
Total : 10347.73
Is it correct. Please clarify.
M.Jebaraj
CAclubindia
