Service tax on work contract tax

This query is : Resolved

CA AMIT GANGWAL (Querist)
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06 February 2015 We have make a contract with individual that for civil, carpentry, pop , painting work with approx. Rs. 1. cr and work contract tax applicable .

What is service tax applicable

if service applicable that what is the rate applicable

RCM applicable

cenvat applicable

amit

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2015 Service tax payable at 12.36% on 40% of contract value if it is original work. In case on maintenance work it is payable on 70% contract value.
As service provided to individual no RCM applicable.
CENVAT credit on Input Services and Capital Goods Allowed As per explanation 2 of the determination of value rules, there is no restriction on claiming the CENVAT credit of Input Services and Capital Goods.
The provider of works contract service can claim CENVAT credit of Input Services and Capital Goods.

CA AMIT GANGWAL

CA AMIT GANGWAL (Querist)
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06 February 2015 Dear Sir,

Thanks ,

70% of above will be paid by provider or 50% by receiver and 50% by provider

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CA AMIT GANGWAL

CA AMIT GANGWAL (Querist)
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06 February 2015 We can adjust against input cenvat , we are in service industries

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 February 2015 70% will be paid by service provider, you can adjust against input cenvat.