12 July 2012
HOW IS SERVICE TAX CHARGED UNDER WORK CONTRACT WORK FOR COMPOSITON SCHEME WHAT IS THE RATE OF TAX AND WHAT IS THE MEANING OF CENVAT CREDIT PLEASE EXPALIN
12 July 2012
Now there is no composition scheme. For works contract, the taxable turnover has to be arrived at after deducting material value as shown in the VAT return. If material value could not be ascertainable, pay service tax for 40% of the value @12.36%. This will work out as 4.944%.
Cenvat credit means the excise duty amount or service tax amount collected by the suppliers for the materials purchased by you or services received. Please read the cenvat rules.
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