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work contract under composition tax rate?

JAYAPRAKASH K (28 Points)

04 July 2017

In case works contracts under composition what is the rate under GST ACT?

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9 Replies

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 04 July 2017

Work contractors cannot opt for composition scheme.

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Hema Gs (114 Points)
Replied 04 July 2017

Salomi is right

RAJA P M ("Do the Right Thing...!!!") (127984 Points)
Replied 04 July 2017

Yes I agreed to Mr. Saloni....

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (170177 Points)
Replied 05 July 2017

Originally posted by : RAJA P M
	Yes I agreed to Mr. Saloni....

Raja Sir, Let her be she............ I too agree with HER........

1 Like

RAJA P M ("Do the Right Thing...!!!") (127984 Points)
Replied 05 July 2017

Dear Dhirajlal Sir.,
It's big mistake I know. But, it's occurred in my mobile dictionary. I typed Ms. but it's taken Mr. 😂😂😂

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Hema Gs (114 Points)
Replied 05 July 2017

no services can opt for composition except restaurant.

1 Like

JAYAPRAKASH K (28 Points)
Replied 05 July 2017

under composition work contract clause (b) of paragraph 6 of schedule II under rate of tax is 2.5%
6 is composite supply
a. work contract as defined in clause (119) of sec 2
as per sec 119 work contract is under composition,
work contract under composition tax rate 2.5% but not eligible claim input tax credit
sir please confirm.

SREENIVAS (ACCOUNTS MANAGER) (36 Points)
Replied 05 July 2017

Dear Jayaprakash Sir,

Composition scheme has permited for only small scale manufacturers and dealers those aggregate turnover less than 75 Lakhs and not for Service sector except Restaurant services.

GST Will be 18% for Works Contract Services (Construction Services) and ITC available.

Hema Gs (114 Points)
Replied 05 July 2017

under GST composition is for supply of goods. works contractor is a supplier of services under GST. so also restaurateur is supplier of services. no service supplier is eligible for composition except restaurateur.