service tax

This query is : Resolved

peena (Querist)
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27 November 2008 i have taken service tax registration under work contract services currently i am paying service tax under composition scheme @ 4.12% however one of my client issue order to me @ full service tax rate & he will be paying me full service tax @ 12.36% extra & taking input credit of the same. do i need to take modification in my service tax registration certificates for the single work & can continue to pay service tax @ 4.12% under composition scheme or other works

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 November 2008 Levy 4.12% and pay 4.12%.

peena

peena (Querist)
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27 November 2008 have taken service tax registration under work contract services currently i pay service tax under composition scheme i e 4% if i pay st @ 12.36% against one work & remaining work under composition scheme if it is possible

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 November 2008 Not possible.

Jitender

Jitender (Expert)
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27 November 2008 it is not possible to pay tax under both schemes.

peena

peena (Querist)
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28 November 2008 have taken service tax registration under work contract services currently i am paying service tax under composition scheme @ 4.12% however one of my client issue order to me @ full service tax rate & he will be paying me full service tax @ 12.36% extra & taking input credit of the same. do i need to take modification in my service tax registration certificates for the single work & can continue to pay service tax @ 4.12% under composition scheme or other works

peena

peena (Querist)
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CA. Mahesh Agarwal

CA. Mahesh Agarwal (Expert)
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08 December 2008 In my view, it is possible because it is applicable for one work contract.
Composition Scheme:
Works contract (Composition Scheme for Payment of Service Tax) Rules 2007 has been
notified vide notification 32/2007 ST dated 22.05.2007 by the Central Government for the
purpose of specifying the scheme for composition. The person executing works contract has the option to pay tax under the composition scheme at the rate of 4% w.e.f 1st March 2008 (Earlier- 2%) on the gross amount charged for the works contract. Gross amount shall not include the VAT/ CST or sales tax paid on the goods transferred during the execution of such works contract. The option is to be exercised prior to payment of service tax in respect of the said works contract and once exercised, shall be in force till the completion of the works contract. It may be noted that the composition scheme is optional for assessee.

There is no need to change in ST reg. No. but do communicate with the department

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