Service Tax on Works Contract

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..... Dear sir, Any Exemption have from Service Tax on Works Contract Please give Notification or any other details, Thanking You, V.Laxmaiah.Sudhakar Polymers Limited - Reply By CA Rachit Agarwal - The Reply = Please refer Rule 3 of Works Contract Composition scheme where you will be required to pay 4% of the contract value. You will not be eligible to take the cenvat creit on the inputs. Furthe .....

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..... r the Contract Value includes the value of inputs/ input services however excludes the cost of tools, machineries and other state level taxes. - Reply By Ramanujam Varadarajan - The Reply = In addition exemption under Notification 12/2003-ST on value of goods sold under the documentary evidence is available for all the services. - Reply By Brijesh Verma - The Reply = Dear Friend, I am afrai .....

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..... d that I don't agree with the contention of my Ld. Friend Varadarajan Ji. Benefit under notification 12/2003-ST is not available in case of Works contract Service. Legally only two options are available to WC Service Providers i.e. : either pay tax under Composition Scheme under WC (Composition ) Rules 2007 [ Notif. No. 32/2007 ] or pay tax on actual calculation under rule 2A of the .....

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..... Valuation Rules 2006 So, in my view, since legally there are only two options, but the third one i.e. (paying tax on normal value after taking benefit of 12/2003 is absolutely risky. - Service Tax on Works Contract - Query Started By: - Laxmaiah Vanamamula Dated:- 26-11-2010 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, perso .....

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..... nal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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