Query on S.T rate in Case on Work Contracts

Vishal Jain (Service) (24 Points)

21 March 2009  

Please suggest at What rate Service Tax Should be charged ? Details are as Follows:

Contractor is give a Work contact for office interior in mumbai(MVAT Applicable) and contactor charges separate Vat @ 12.5% on the 75% of Conatct Value (as per Rule 58 of MVAT saying no proper books are maintained and calims abatement of 25%) . For Service Tax he charges 10.30% on 33% of Contract Value.

Please suggest is he correct. What is the proper way and rates for charging Vat and Service Tax in case of Work Contacts where proper books are not maintained.