THE SERVICE TAX FOR WORKS CONTRACT UNDER COMOSITION SCHEME WHETHER WE HAVE TO PAY ST ON WHOLE CONTRACT VALUE LESS VAT OR WE CAN DEDUCT MATERIAL USED AS PER NOTIFICATION 29 / 2007/DATED 1.6.07.
PL.. URGENT
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SERVICE TAX ON CONSTRUCTION CONTRACT
Replies (1)
the composition scheme will be available only when u pay the service tax on the entire contract value. Further u can take deduction of any tax WCT/VAT/sales tax that would be paid and included in the contract value.
Further u will have to include the value of all the materials used in the entire work that is executed meaning to say that the value of materials used in any other contract fir the same work will also have to be included.
Say for eg: the entire work is completed by 2 contractors then the 1st contractor if is paying on composition scheme then he will have to include in his contract value the value of materials used by the 2nd contractor as well or any other material that may be used in the contract.
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