Service tax under composition scheme

Queries 591 views 1 replies

CA Parag Shukla

Practicing Chartered Accountant

153 Points Joined January 2010

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

Replies (1)

Pradeep Nainawati

ACA

496 Points Joined June 2009

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.