12 February 2009
If we have taken patial abatement of 67%on gross value,then we charge service tax 12.36% on 33%of gross value. my query is that 67% should be come under vat, and what is the rate on this amount
15 April 2009
Under service tax law, The abatement of 67% is allowed on gross value subject to fulfillment of certain conditions. The VAT is a state law and the rules for calculating will differ state to state, like under Karnataka VAT law, the deduction towards labour and like charges is 30% subject to certain conditions so on the balance 70% VAT is payable. The rate of works contract differ from state to state
CAclubindia
