the assessee is a civil contractor. he is purchasing material for construction & giving labour charges for construction. can anyone help me out abount the rate of service tax & vat applicable? is there any composition scheme under MVAT act?
14 July 2008
Service tax law: If the assessee is a civil contractor, he will be covered under works contract service. The rate of service tax is 12.36% under regular scheme subject to abatements towards materials cost. If under the composition scheme , then the rate of service tax is 4.12% on total consideration which includes material cost and labour cost
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