Service tax -query for recent amendment of 01.070.2012

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2012 Dear Experts,

As per the recent amendments of service tax took place on 01.07.2012, i would like to know what is the rate to be charged henceforth for the tax rate of 4.8% for Works contract, because now for the Glazing service it is 60% of 12% i.e.7.2%. We have issued some of the sales invoice at 4.8% now, how to recover the difference amount of 7.2% with 4.8%. We are into Building interior activity. Please refer the SR Notififcation No.160 in which 12% (60% of 12%) to be charged instead of 4.8%. We raised in the old rate, wanted to know how to set up the difference tax rate and if yes, then any provision to get refund for the service tax already paid.

Kindly clarify.
Regards
Vithal

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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08 October 2012 Options Available are:-

1 Pay service tax on Value of services after deducting value of goods from the gross value.

2 Pay service tax at composite rate
In case of original work, pay service tax on 40% value,

In case of maintenance or repair or reconditioning or restoration or servicing of any goods, pay service tax on 70% value,

In case of all other works contract, pay service tax on 60% value.

Service provider is also eligible to avail CENVAT Credit of input services and capital goods.

Since You Fall Under Second Options.

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2012 Dear Sir,

Thanks for your reply. Further to clarification i wanted to know whether the service tax is

a) For the materials amount
b) Whether such service tax including/excluding of Labour,Transportation etc charges.
c) Whether ST @ 60% of the materials value or is it 60% of 12%.
d) Such materials (as mentioned in point(a) while raising the Invoice.
e) When we need to charge 12.36% tax rate on what whether on Labour/Transportation or materials.
f) If invoices already been raised then how to collect the difference amount.

Please clarify with more specifications.....

Regards
Vithal

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CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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08 October 2012 60% of 12.36%,
two option are ther,That Depend on you if you deduct the material value and or take on full value, then abatement is available otherwise not