Mayank Kapoor (.) (159 Points)
06 September 2011Hi
I have a query . What is the abatement percentage for Works Contract for turnkey projects ??
It guess it used to be 67% last year. What is the current scenario? My client does not want to go for the composition scheme.
Can anyone please let me know the abatement percentage for the Works contract for turnkey projects.
Thanks in advance
Mayank Kapoor
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 06 September 2011
Abatement scheme is not available if you are registered under works contract. Abatement is available if you are regisrsterd under commercial constrcution/residential complex/erection installation. Rate is 67% and if land value is included in consideration, then 75%.
Mayank Kapoor
(.)
(159 Points)
Replied 07 September 2011
So should I advice them to go for the composition scheme??
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 07 September 2011
Yes composition is advisable. Else you can exclude value of goods and pay 10.3% on labor element.
Mayank Kapoor
(.)
(159 Points)
Replied 08 September 2011
Sir one last query. Assuming that the client opts for paying tax @ 10.3% , can he avail cenvat credit on telephone bills?
And can he avail Credit Of Inputs of work from sub contractor? I think we are allowed credit of input services and capital goods but not inputs.
Thanks in advance.
Abhinav Pandey
(Executive-Accounts)
(94 Points)
Replied 28 October 2011
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