Works contract

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..... Works contract
Query (Issue) Started By: - N Balachandran Dated:- 22-11-2012 Last Reply Date:- 23-11-2012 Service Tax
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Service Tax
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 cu .....

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..... stomer under CST Sale. The Civil works is executed in Tamil Nadu by the company having the registered office in Tamil nadu and discharge the Service 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?. .....

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..... 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 service 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 mat .....

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..... erials used for works contract are sold by you to the customer which is correct if the Rule 2A is not adopted. In case of errection 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 supp .....

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..... y of skilled labours for errection, then it would certainly not come under the composition scheme. So you are right to charge @12.36% if it is on service portion. BB DIXIT, +91-9431133227
Discussion Forum - Knowledge Sharing .....

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