1.

What Will Be The Effective Rate Of Service Tax In Case Of Works Contract Service After Levy Of Kkc?

Answer»

As per Rule 2A of the Service TAX VALUATION RULES, KKC needs to be applied along with Service tax and SBC on specified portion and the effective rate of Service tax in case of Works CONTRACT Service would be as under:

  • Ø In case of ORIGINAL works: 6% (15%*40%); and
  • Ø Other than original works: 10.50% (15%*70%)

As per Rule 2A of the Service Tax Valuation Rules, KKC needs to be applied along with Service tax and SBC on specified portion and the effective rate of Service tax in case of Works contract Service would be as under:



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