commercial and Industrial Construction Service

This query is : Resolved

Jigish (Querist)
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14 May 2009 Hello

I am Jigish Shah want to know in detail for calculation of Servic eTAx on Commercial And Industrial Construction Service.

1.Abettment
2.Cenvat Credit
3.Works Contract Taken

In all above How To Calculate ST

Pl.Guide me

annapurna

annapurna (Expert)
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15 May 2009 For calculation your should know the Service tax law. Basically the abatement is the deduction given for materials costlike 67% of total consideration. When Abatement is claimed then CENVAT credit cannot be availed. On the balance 33% of total consideration the tax of 10.30% has to be computed.

Jigish

Jigish (Querist)
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16 May 2009 I know Service Tax Law and as per your reply I agree that on 33% Service Tax Pay @ 10.30% after Gross Value Charged In Invoice.

But Suppose We go For Works Contract Service Than We can avail Cenvat Credit on Input Goods & Services?

Secondly I transfer my contract to Sub Contractor than For Payment of Service Tax Who is liable?

And suppose sub contractor charge Service Tax to me and deposit in Govt. Than Also I have to charge to Client in my bill and take Cenvat Credit For ST Charge by Sub Contractor OR I have to Raised Invoice Excluding ST?

Regards

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