Value for SBC

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..... Value for SBC
Query (Issue) Started By: - Mangesh khedkar Dated:- 23-12-2015 Last Reply Date:- 27-12-2015 Service Tax
Got 7 Replies
Service Tax
Dear sir, We had given contract to SSI vendor in composite work (work contract service). vendor consider 70% value for service tax & 100% value for vat hence which value applicable for swachh bharat cess. Reply By Rajagopalan Ranganathan: Th .....

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..... e Reply: Sir, For charging SBC the abated value on which service tax is paid is to be taken. Reply By Ganeshan Kalyani: The Reply: I agree with the reply submitted by Rajagopalan Sir. Reply By YAGAY AND SUN: The Reply: Dear Mangesh, In Maharashtra VAT Laws under Works Contract Tax, your vendor has option to levy VAT/WCT in following three way, namely: * On Actuals * On abated amount * .....

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..... Under Composition Schem If your vendor charges VAT/WCT on 100% value then it means charges on VAT/WCT on service portion also which is not the mandate of VAT Laws. Discuss with your SSI Vendor about the correct levy of VAT/WCT under MVAT Act read with rules made there under. Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) Reply By Ram Babu singh: The Reply: SBC sha .....

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..... ll be charged on value of service portion i.e 70% of the value of work contract. Reply By Ganeshan Kalyani: The Reply: Yes it has been cleared by CBEC that SBC is a levy alike service tax and hence it will be charged like that of service tax. Reply By CA Surender Gupta: The Reply: Yes, I fully agree with the views as above of the experts. If service tax is exempt, SBC will be exempt. Where ser .....

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..... vice tax is chargeable on abated rate, sbc will be charged at abated rate also. Where service tax is charged at full rate on reduced value, sbc will also be charged at full rate on reduced value. Reply By MARIAPPAN GOVINDARAJAN: The Reply: The views of Shri Surendra Gupta is self explanatory.
Discussion Forum - Knowledge Sharing .....

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