About work contract & rcm

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2013 I was filed Service tax return for period Oct 12 to March 13 & It was rejected due to Advalorem Rate(point no. B1.15)So my question is that:

1.what is rate of work contract? (i was taken rate @4.944% still it was rejected)

2.How much amount to be taken in Service tax payable Under RCM (Point B1.6),100% or 50% of gross value of service provided.

CA Suresh Jain

CA Suresh Jain (Expert)
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02 October 2013 It looks that you are calculating service tax on original works contract @ 40% of 12.36%.

The correct way is to calculate value of service in works contract @ 40% of total value of works contract and apply service tax rate of 12.36%.
If RCM is applicable then rate of tax would be 6.18%
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*Disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case.