kalpan (articleship) (30 Points)
20 December 2009Hello every one
suppose one service provider rendering the service which i have posted above...his turn over suppose to be crossing 40 lacs....
here i want to save my client service tax...as low as possible
is there any way to avoid service tax.?
plz if possible reply me..
thanks..
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 23 December 2009
First examine whether the construction is commercial in nature. Govt construction, public hpositls, educational institutions for public are not covered) If taxable the options are:
1. If the contract for supply of materials is separate - say 75% of the same 30 L. The the balance upto Rs. 10 L is exempt.
2. Alternative is to pay ST on the balance after paying VAT ( maybe on 30% or on labour deduction)
3. Another alternative is to charge 4.12% on the gross amount under composition
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