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.
Rohit KC Jain & Co
New Delhi
CA Inter
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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CCI
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