special service tax rate

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prem (Querist)
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04 June 2011 Dear Friends
I want to know that what is s.t. rate on work contract service. Is there any cess is applicable on it. I want to also knok that is there any rate of s.t. on work contract @3.45 % in any fin. year
With reg.
Prabhat

Sanjeev Kumar

Sanjeev Kumar (Expert)
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06 June 2011 there is service tax rate under WC composition scheme is 4% plus Cess 3% on tax i.e. effective rate of ST is 4.12%

prem

prem (Querist)
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06 June 2011 Dear sir,
If gross amt. inc. S.T. IS Rs.100000/-inc. material cost and labour cost, than what will be treatment of this amt. in S.T & Sale tax.
Pls. give me correct view on this quari
With Reg.
Prem

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Sanjeev Kumar

Sanjeev Kumar (Expert)
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07 June 2011 if there is divisible contract, then u can charged both taxes separately i.e. for supply- VAT/CST, as the case may be, and for labor- Service tax BUT if contract is indivisible (composite), then u have to evaluate your tax-ability in terms of contract & laws in force. mainly 2 schemes are under State VAT, i.e. normal & composition but no such scheme under CST Act. accordingly composition scheme in only under WC category in ST but in other category of services there is abatement theory but CENVAT restriction. so without review complete facts of WC- very hard to conclude best possible way for tax-ability