I am a P.C.C. student and currently on an audit of a constuction co. My query was related to Work Contract.They have a party charging Service Tax @ 10.3% on the entire Invoice amt and VAT @ 4%on 75% of the Invoice amt.I just wished to confirm is this policy of the party appropriate?There is another party following Composite scheme and is charging VAT @ 5% on the entire Invoice amt and Service Tax @ 4.12% on the entire Invoice amt . Is the rate 4.12 % appropriate because as per my understanding , it should be 1/3 of 10.3% but the party is charging 1/3 of 12.36%?
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Service Tax on Work Contract.
Replies (2)
clarify whether we have to charge service on the job work made, which is used in final product.
Dear Uday
The rate for Service Tax undercompostion scheme is still @ 4.12% (i.e. 33.33% of bill amount @ ST 12.36% )
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