ST of Works Contract Service

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..... ST of Works Contract Service
Query (Issue) Started By: - Padmanaban M Dated:- 21-2-2012 Last Reply Date:- 22-2-2012 Service Tax
Got 2 Replies
Service Tax
HI, In Works contract Service, the contract has been awarded in the year 2008 for Rs. 600000/- In 2008 advance of Rs. 100000/- recd, the Service tax liability of Rs. 12360/- i.e.,@ 12.36% is paid to the department, likewise one mor .....

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..... e advance recd during the year 2010 for which the service tax was paid @ 10.30%.  Now the entire work is completed we need to raise invoice for Rs. 600000/- i.e. 2012.  How service tax to be charged in the invoice and how much service tax to be paid after adjusting the ST paid on advances.  The illustration is given below;                                 Adv Recd             Rate of ST Paid       .....

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.....             ST Paid                                 100000                  12.36%                                 12360                                 100000                  12.36%                                  12360                                 100000                  10.30%                                  10300                                 100000                  10.30%          .....

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.....                          10300                ______________________________________                                   400000                                                                  45320                                 ______________________________________     Pl explain.   Reply By Vivek Harsh: The Reply: Dear Sir u need to bifurcate between the total contract price between .....

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..... value of material and labour charges. Service tax is to be paid only on labour charge and material supplied shall attract VAT liability. If after making the above adjustments if any duty liabilty arises u need to make the balance payments.Cenvat credit only for input service and not for input goods. OR In case value of material and labour cannot be bifurcated tax shallbe paid @ 4% percent. No ce .....

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..... nvat credit available. Reply By Vivek Harsh: The Reply: Dear Sir u need to bifurcate between the total contract price between value of material and labour charges. Service tax is to be paid only on labour charge and material supplied shall attract VAT liability. If after making the above adjustments if any duty liabilty arises u need to make the balance payments.Cenvat credit only for input se .....

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..... rvice and not for input goods. OR In case value of material and labour cannot be bifurcated tax shallbe paid @ 4% percent. No cenvat credit available.
Discussion Forum - Knowledge Sharing .....

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