Dear All
Pay service tax under ‘composition scheme’ at 4.12% of ‘gross amount charged for works contract’ (inclusive of education cess and SAH education cess), under ‘Works Contract (Composition Scheme for Payment of Service tax) Rules, 2007’. As per rule 3(2) of Composition Scheme, the assessee cannot avail Cenvat credit of inputs. Thus, the assessee can avail Cenvat credit of input services and capital goods.
In above case, Vat/sales tax will not be included in the ‘value’ for purpose of calculating service tax.
if excise is applicable on sale of material under works contract, same would be included or not for claculation of service tax under works contracts ( composit scheme ) ??????.
CAclubindia
