We have opted for Composition scheme under VAT in Chhattisgarh State, rate of VAT is 2% on Civil Works. We have raised a bill which includes only service component, no material is included in that bill. Now my query is that whether we have to charge service tax @ 4.8% (under composition) or @ 12.36%.
Thanks in advance
Rate of ST will be 12.36%. As per valuation rules if you are not able to determine value of service portion in execution of works contract then the method of composition is to be adopted.
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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