Works contract treatment in st return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2016 We are providing works contract service so we charged service tax on 40%(original contract) & 70% on (Repairing etc) My query is how can we show abatement amt (i.e 60% or 30%) in ST-3 return in which column and against which notification No. SI. No. (or exemption Notification No.) which Notification No. & in which column exempted or abated value should be entered. kindly clarify & help us. Thanking yours

Guest

Guest (Expert)

05 March 2016 Dear Sir/Madam,

This 60% or 30% is not an abatement amount. This is considered as a deduction to arrive at a taxable value of works contract service under "Service tax determination of valuation rules, 2006". Further when u are not a body corporate and doing works contract service to a body corporate service tax is payable only on 50%. At that time u have to mention notification 30/2012 in return and show the taxable value (i.e Invoice value X 40% X 50% ) under Sl.B1.1 - Gross Amount. If u are a body corporate u need not mention any notification number but only show the taxable value (i.e Invoice value X 40%) under Sl.B1.1 - Gross Amount.