01 October 2015
is there any difference between work contracts & construction w.r.t. service tax?
is vat & service tax applicable on both? If yes then on which rate and values?
01 October 2015
Pl.go through the definition of the term works contract service as per section 65B(54) of Finance Act,1994.in such contract transfer of property in goods as there ,which is chargeable to State VAt where as the value of service portion is chargeable to service tax. VAT and service tax both are not charged on the same amount For valuation of service portion inexe.of WC contract Pl.refer Rule 2A of service tax valuation Rules. so far normal construction service is concerned it may be there without use of any materials by the service provider and there for taxable at the full rate of 14% now.hope it is clear.tks.sagarmal pareek,bharuch,9824346469
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