Taxes on interior design work

In this type of works contract, the classification wouldbe under commercial construction services. The options under ST are:

1. Pay 4.12% on gross value under composition. Credit of CED on capital goods + Service tax credit on eligible input services wouldbe available.

2. Pay ST on 33% and VAT as per local VAT law. No credit available.

3. Pay VAT on actual materials transferred and pat ST on balance: if VAT paid on 65% then pay ST on 35% under Not. 12/2003. Credit on Capital Goods / Services available.

Service tax credit is doubtful in the light of new definition of input service. Setting up of new office is not input service. If it is repair or maintenance, may be admissible. Credit under VAT is governed by the state VAT law. May not be admissble, as it neither input nor capital goods .

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I am keeping this bookmarked as the responses on a complicated issue like works contract are given by service tax experts like Mr. Hiregange and Mr. Nair.

Regards,

Is there any provission regarding composit scheme of service tax on Interior Decoration

Hi,

we are engaged in telecommunications services, we have shiifted our registered office to some other place, where in we have taken interior decorator (renovation cost) services, In the invoice VAT & Service tax are charged, Can we take the same as input against our output