Service Tax Rate for Nov 08 PCC exam

Dear friend.

The ST Rate applicable is 12.36%

Dear friends,  please remember that it is not 12.36%.  It is 12% plus EC and SHE Cess @ 2% and 1% repsectively.  In total effective tax is 12.36%.  We cannot cess into tax and then tell consolidated rate.  Please do remember, the rate is 4% plus Cesses in case of composition scheme under works contract services (Sec.65(1050(zzzza).

general rate is 12.36%

we have received road construction from a corporate for Rs 25 lks further we have given a sub contract to other contracter all material and labour cost will be borne by the sub contractor. how much service tax will be charged by the sub contractor and howmuch service tax we shall charge to the company whether we can take credit for the service tax charged by the sub contractor material cost is 60 to 70 % and the rest is labour charges. PLEASE ADVISE