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Service tax rate in works contract

B KRISHNA (ACCOUNTS CONSULTANCY) (75 Points)

19 May 2012

pls let me know the service tax rate in works contract after revision in service tax rate from 10.3% to 12.36%.

earlier service tax rate is 4.12% and now after revision what is the rate?

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10 Replies

Sonu Kumar (Account Manager) (665 Points)
Replied 19 May 2012

Dear Mr B Krishna.... New Rate is 4.944%

4.8% Service tax

2% Education Cess

1% Higher Education Cess

4 Like

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Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 19 May 2012

Agree with above.

RENGARAJ R.K (ADVOCATE) (7557 Points)
Replied 22 June 2012

If you are in composition scheme, the rate of service tax is 4.944% on total value.

rengaraj r.k

1 Like

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 04 July 2012

I would like to bring into the notice that the composition scheme has been rescinded w.e.f 01/07/2012. Hence, one has to follow the rules as mentioned in Service tax (Determination of Value) Rules,2006. Now there in no such rate as 4% on a composite Works Contract.

Vinod Rakhecha (Sr. Executive-Accounts) (28 Points)
Replied 31 August 2012

Ajit sir,

Can you provide the notification or any circular regarding this

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Mallikharjun (Deputy Manager) (304 Points)
Replied 31 August 2012

I agree with Mr. Dubey. Compostion scheme was there earlier. It has been rescinded. Pls see 34/2012 ST notification. Now composition % is given in the valuation rules, it may be 40/60/70% depends on the nature of the contract. Pls go through the 24/2012 ST notification.

1 Like

(Guest)

please refer: https://www.indiantaxupdates.com/2012/11/service-tax-on-works-contract-wef-1st.html

Anand Mohan (Proprietor) (55 Points)
Replied 07 November 2012

I agree with mr. dubey and also request you to go through s.no. 12 of the table annexed to notfn.no. 26/2012 which also talks about abetment of value on complex construction services of 75%.

It is all confusing in service tax.

The central govt must come out with immediate clarification so that minor repairs upto Rs.30000 per bill are not covered in service tax. This reverse charge mechanism has just been added without giving any thought to the misery which it will cause to small and petty traders. Sometimes it looks that they did it just to save advocates from this service tax registration. The time has come when the govt drops any idea of discrimination between advocates and other professionals.

Perhaps they have covered everything under the sun in the definition of "works contract" if it is not covered by any other term.

Thanks

Anand Mohan