Works contract

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..... Sir, Kindly clarify if the order is placed by the customer for supply, erection and civil works with seperate order for each activity, The supply of Equipment will be effected by the Manufacturing unit which is located out side Tamil Nadu to customer under CST Sale. The Civil works is executed in Tamil Nadu by the company having the registered office in Tamil nadu and discharge the Servi .....

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..... ce tax tax liability under Composition Scheme (40% of Civil Works Value ). The Erection works also executed by the company in Tamil Nadu and discharged the service tax liability @ 12.36%. Is it correct method for discharging the service tax liability?. Is there any possibility by the dept to club the supply order value also to arrive the service tax liability as we are discharging the se .....

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..... rvice tax liability under composition scheme for Civil works alone. I shall be thankful if you could clarify the same. Regards N.Balachandran - Reply By bipad dixit - The Reply = Composition scheme for service tax is adopted for works contract, even if the materials used for works contract are sold by you to the customer which is correct if the Rule 2A is not adopted. In case of errect .....

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..... ion works, materials used for that work are no more owned by you after it is effected thru cst sale, If the work order is made separately for errection work and the materials used for errection work are owned by customer and the nature if service you provide is only suppy of skilled labours for errection, then it would certainly not come under the composition scheme. So you are right to charge @1 .....

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..... 2.36% if it is on service portion. BB DIXIT, +91-9431133227 - Works contract - Query Started By: - N Balachandran Dated:- 22-11-2012 Service Tax - Got 1 Reply - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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