Composition Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2010 Dear Sir

We have given a works contract to construct a factory shed, our total cost of contract is Rs. 26,00,00,000 for that we had paid Rs.5,00,00,000/- towards advance and as per agreement 30 % of the total contract amount has to pay to the contractor i.e.7,80,00,000 the contractor has raised a bill like this
release of progress amount i.e 30% of the total contract = 7,80,00,000.00
He added 4%as Compositiontax= 31,20,000.00
total = 8,11,20,000.00
less advance received = 5,00,00,000.00
total = 3,11,20,000.00
again he added work contract
service tax as 4% on 2,80,00,000 lakhs

i.e 11,20,000.00
and educ cess 2% 22,400.00
and sh cess 1% 11,200.00

total he billed 3,22,73,600.00

is this correct as we have to pay seperate composition tax @4% and work contract service tax @4%

please give me quick advice.

Regards
Rafiq