Works contract

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Rajkishor Barik (Querist)
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10 March 2015 if in a works contract the material and labour portion has been bifurcated in a single bill with contractor profit, then amount of service tax.

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TKKKKKK (Expert)
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11 March 2015 If there is composition scheme -service tax is charged on full bill including material, labour and service tax, service tax rate is different for different work contract.

Original work contract - consturction, erection, commissioning original work (60% abatement is available) - 4.944% service tax is required to charge on gross bill.

If any other contract like repair and maintenance etc (30% abatement is available ) - service tax rate is 8.652% on bill.

If service tax is provided by individual to company, 50% service tax is required to charge in bill and 50% is payable by company itself under reverse charge mechanism.