Works contract under composition Scheme

Download Preview

Description:

Works contract under composition Scheme #pdf

Submitted By:

kosigi.prabhakar

on 25 June 2016

Other files by the user

Downloaded:

986 times

File size:

103 KB

Rating:

Download Other files in Service Tax category

Share Report

File Content -

Hi, Payment of service tax on works contract under composition Scheme: Rule 2A(ii) Service tax Determination of value ) Rules 20016: Under composition scheme service tax payable at specified percentage of “Total amount” i.e ,total value of value of contract. So in this case : 1. ABC Ltd is opted the composition scheme as per rule 2A(ii) Service tax Determination of value ) Rules 20016 2. ABC Ltd levied 15 % on 30 %( i.s specified percentage ) of Total amount. 3. So RCM will not applicable ( need to verify HUF/Individual/Firm) 4. Cenvat credit ( i.e, Service tax input) is not available 5. ABC Ltd Invoice should be only Gross amount ( i.e No separate amounts for goods & Services) Requirements : 1. ABC LTD should disclose Service tax Registration number on face of the Invoice 2. Service tax should be bifurcated i.e service tax@14%, SBC@.05% & KKC@05% Particulars Amount Total Value for contract 100 VAT 14.5% on 75% of Total Value of contract 11 Service tax@14.5% on 30% of Total Value of contract 4.35 Total Value for contract 115.35

Upgrade to CAclubindia Pro. Subscribe Now!

Comments