service tax

This query is : Resolved

harish (Querist)
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22 January 2009 Dear Professionals,

I am requesting to u pls give me detail that how service tax is defferent to work contract tax.

where service tax is not applicable and wct is applicable

Harish

CA Amarpal

CA Amarpal (Expert)
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24 January 2009 Dear Harish

As per the given facts,
Both service tax and VAT shall be levied on works contract.

(i) The CG has issued "Works Contract( Composition scheme for payment of service tax ) Rules, 2007, under which service tax @4% shall be paid on gross amount. However no CENVAT credit of duties or cess paid on inputs used in relation to said works contract, shall not be taken.

(2) The levy of VAT shall be governed by the VAT Act of respective state.

With best wishes
amarpal@icai.org