education and higher education cess on work contract composition schem, Service Tax

[RAM AVTAR]

as per rule 3(1) of work contract composition schem a total 4% is payble on gross determined value of services.  whether education and higher education cell in included in 4% or it is 4.12%

Posts / Replies

[pradeep khatri]

Cess (Edn. Cess + SHE Cess) will be calculated extra on the 4%.

[RAM AVTAR]

finance act 2004 and 2007 says education and higher education cess calculated on the tax which is levied and collected under section 66 of the Finance Act, 1994.

while cluase 3(1) of work contract scheme says "

to works contract service shall have the option to discharge his service tax liability on the works contract service provided or to be provided, instead of paying service tax at the rate specified in section 66 of the Act, by paying an amount equivalent to four per cent w.e.f 1.3.2008, earlier it was 2% of the gross amount charged for the works contract.