Briefly Giude about new amendment in Works Contract, Service Tax

[RAJNIKANT CHAUHAN]

Sir ,

Pl. briefly guide about new amendment in work contract

Warm Regards

Rajnikant Chauhan

Posts / Replies

[Pradeep Khatri]

Dear Rajnikant Chauhan,

Service tax on service portion in Works Contracts:

In Rule 2A of the Service Tax (Determination of Value) Rules, 2006, category „B‟ and „C‟ of works contracts are proposed to be merged into one single category, with percentage of service portion as 70%; this change will come into effect from 1st October, 2014. This rationalization by way of merger of categories has been made to avoid disputes of classification between these two categories. [Notification No.11/2014-ST].

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)