Works Contract Service

This query is : Resolved

CA. Atindra A. Prabhu Bhatikar (Querist)
Follow

29 January 2009 Has anybody actually calculated and compared the two options available to a works contractor - Rule 2A and composition scheme. In general can we say that to avoid any hassels with the Dept at the time of assessment, one should opt for compisition scheme? kindly share ur experience.

annapurna

annapurna (Expert)
Follow

15 April 2009 Even i beleive under composition scheme also there are lots of issues. Basically comparing the rate of tax as of now (10.30%), i think regular scheme is better. Even the books has to specify the duration of the project and the inputs used for the specific project applied under the composition scheme. Analysing of both the schemes has to be done arthimatically rather than to avoid the hassels with the dept