Calculate service tax on contract work

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jay (Querist)
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08 October 2012 Respected Experts,

I want to know that what is the calculation of service tax in contract work with labour and materials for the f.y. 2012-2013. i think the ratio is 67% amount is materials and 33% is labour and the service tax chargeble on 33% amount.i want to know this is correct or not and also this ration is continued in f.y 12-13 or any change from 01-04-2012 so please guide me.

thanks

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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08 October 2012 That is no longer valid.
Now if actual material value available then on gross value less actual value of material. If not then pay ST on 40% of the value. With this you can avail the cenvat credit on capital goods + input services.