Works contract services

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2011 We are executing one turnkey project of Solar Photovoltaic Power plants in the Gujarat state. Our scope involves supply, design, erection & commissioning of the power plant. We have to built compound wall, control room, internal road, basement for installation of module structures etc., under works contract services. Can you let us know the Service Tax applicable rate on works contract services as it is a composite contract which involves both material and labour and seggregation may not be possible for levy of works contract tax and service tax. Please let us have the tax rates for Works contract tax in the state of Gujarat and value to be considered for levy of service tax.

prasad

prasad (Expert)
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07 April 2011 On reading ur query it seems that u r involved only in civil construction.

The service tax is applicable at 10.3% of 33% of your total contract value. 67% u get an abatement under service tax Act.

Regarding VAT under Gujrat Vat Act I cant opine as me not from Gujrat