satyamadhusudhan d (ACCOUNTANT) (24 Points)
08 July 2013Dear All,
We are in works Contract composite Schme in Service tax. All of our Work Orders Value are inclusive of Service Tax. What is rate of Service Tax i have to pay Department. We are raising bills without service tax. Can you please send me the rate of Service Tax. Our works includes Earth work, construction of Roads and Drains for Limited Companies i.e. Jindal Thermal Power India Ltd, Cethar Construction Ltd etc.,
Vikas
(CA)
(1135 Points)
Replied 09 July 2013
Dear friend,
The query of yours is not that easy to reply. You may note the following composition rates for works contract –
|
Sr. No. |
Particulars |
Comments |
Effective rate |
|
|
1 |
Original Works |
i) new construction; ii) any addition and alteration to abandoned or damaged structures on land that are required to make them workable; iii) any erection, commissioning or installation of plant, machinery or equipment or structures, whether per-fabricated or otherwise. |
4.944 |
|
|
2 |
Works contract on Movable properties |
for maintenance or repair or reconditioning or restoration or servicing of any goods e.g. AMC of movable items. |
8.652 |
|
|
3 |
Others |
Apart from 1 & 2 above, any other WCT including maintenance, repair, completion and finishing services such as glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property. |
7.416 |
You may further note that the activity of road construction for use by general public is not a taxable activity.
Further, if you are an individual / partnership firm and are providing aforesaid services to a body corporate then the 50% of the aforesaid tax shall be borne by the service recipient and 50% by you.
Therefore, I would suggest to undergo a deep understanding of applicability of tax on each of your different activity.
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