Service Tax - Interior Work

Your activity is celarly under WC and you should make an application to register under the same. Liability is only from 1.6.2007. From 1.6.2007 till 1.3.2008 the rate of ST is 2.06% and thereafter 4.12%. Credit of excise duty paid on capital goods + credit on ST paid on input services would be available.

Penalty is normally not levied for minor bona fide infractions. The dept officer is only trying to establish his nuisance value to get his pound of flesh.

Keep all corresondences from and to dept in writing to avoid harassment.

Dear Mr.Madhukar, 

Thanks for the reply. Subsequently the Dept. has accepted amendment in Return filed under CCS - no abatement but by taking exemption on "value of materials" and taking credit for "input services" - Not.no.12/2003 & 12/2004. We have arrived at "value of materials" as given under WC Rule2A.

The tax effect is the same in either case  - as under WC also I have to follow the same above method since composition scheme is allowed only if Letter is given that we opt for composition scheme prior to payment of Service Tax. So actually it is only a matter of classification - WC or CCS with no tax implication.

Since dept.person says that since we have filed under CCS upto FY ended 31.3.09 and cannot file under WC due to penalty, to let it be and from current year to file under WC.

Do you see an problem/complication in the future with the above route taken i.e.

1. Classification under CCS ?

2. "Value of Materials" - Under CCS how would they arrive at the value of materials because if it is not the same as under Rule 2A it could have some tax implication. They may not follow Rule 2A since that is only for WC.? Even if we file revised return under WC for period starting 1.6.07 we will still have to follow the CCS route for 1.4.06-31.3.07 so 'value of materials' computation under CCS is very vital.

Thanks once again and look forward to your response.  

Hi , I am an interior contractor registered with sales tax  Bangalore , under work contractors tax. All these years i have been claiming 12.5% as vat from the client and paying ther sales tax department after getting the input credit.

But recently my friend who is also registered under work contract scheme was following a different method of filing taxes.The tax Structure is as follows:

12.5%  and 4%  as Vat for 67 % of the total value of the project  and rest 4.12 as service tax.Please tell which is correct and if the latter above is correct ,please explain to me by giving detail analysis .

Thanks

Shiraz

Hi , I am an interior contractor registered with sales tax  Bangalore , under work contractors tax. All these years i have been claiming 12.5% as vat from the client and paying ther sales tax department after getting the input credit.

But recently my friend who is also registered under work contract scheme was following a different method of filing taxes.The tax Structure is as follows:

12.5%  and 4%  as Vat for 67 % of the total value of the project  and rest 4.12 as service tax.Please tell which is correct and if the latter above is correct ,please explain to me by giving detail analysis .

Thanks

Shiraz

Dear Sir ,

Being a registered an interior contracor under WC  is it necessary always to accept payments from the client through a check or can i accept cash for purchase of material and reflect the same while filing sales tax returns. Please guide me.

Thanks

Shiraz

Hello,

My Client egistered with service Tax under Service of Interior work.my queries

1.How to billing???

2.if he incurring any expenses on behalf his Client then how to do billing

3.whether he need to be registered  under MVAT???