Specified Value - Works contract services - Service Tax Practice Manual / Ready Reckoner - Service Tax

Rule 2A Valuation of works contract services including composition scheme Rule 2A of the Service Tax (Determination of Value) Rules, 2006 Assessee can opt any one to the two options: Option 1: Valuation method i.e. Gross Value (A) minus Value of goods (B) [as specified] - Rule 2A Value of taxable services = (A) (B) Option 2: Composition scheme i.e. - Rule 2A Value of Taxable services = 40% on original contract Value of Taxable services = 70% on Specified works contract* Value of Taxable services = 60% on Other works contract * Specified works contract (for composite value @70%) (i) maintenance or repair or reconditioning or restoration or servicing of any goods; or (ii) maintenance or repair or completion and finishing services such as glazing or plastering or floor and wall tiling or installation of electrical fittings of immovable property, Restriction on Cenvat Credit:- Provider of taxable service shall not take CENVAT credit of duties or cess paid on any inputs, used in or in relation to the said works contract, under the provisions of CENVAT Credit Rules, 2004 .] Also Refer:- Valuation aspect from the Education Guide issued by the CBEC