service tax

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manoj patel (Querist)
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14 February 2011 what amount is included in calculation of service tax in case of construction business

material,steel,vat on both, labour
and what should be deducted

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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16 February 2011 works contract catgeory:
Opt- 1 pay 4.12% on gross value including material. Credit only on capital goods + input services
Opt- 2 pay ST on value after deducting value on which VAT paid under regular scheme [ maybe 70% or actaul material may have sufferred VAT- if os on balance 30% or 100 minus value offerred for VAT]Credit only on capital goods + input services.

Opt- 3 pay ST on gross value and avail credit on inputs + input services +capital goods.