works contract services

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  1. amrit patel

    amrit patel New Member

    please help

    what rate applicable in case of works contract services
     
  2. RAHULSHAH03

    RAHULSHAH03 New Member


    Option-II: Abatement/Composition Method
    Service portion can also be determined on ‘Total Amount’ of works contract as given below:
    A. At 40% for original works (at 25% where gross amount includes value of land for residential unithaving carpet area upto 2000 sq. feet or where amount is less than one crore rupees and at 30% forother than above);
    B. At 70% for maintenance or repair or reconditioning or restoration or servicing of any goods;
    C. At 60% on works not covered under above (A) and (B), including maintenance, repair,completion and finishing services such as glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property.
    ‘Total Amount’ means Gross Amount charged plus fair market value of materials issued to the contractor by contractee but excludes value of materials issued on chargeable basis to the contractor and VAT thereon. Under both the above options, Cenvat credit is available on ‘Capital Goods’ and input services used for providing output service.

    Pay tax @12.36% on specified percentage i.e., 40% or 60% or 70% of Total Amount as enumerated in above paragraph “Option-II” under Standard Deduction/Abatement Method
     
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