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April 2012

Gross amount w.r.t. Works Contract — Circular No. 150/1/2012-ST, dated 8-2-2012.

By Tarun Ghia, Brijesh Cholera, Pratik Mehta, Chartered Accountants
Reading Time 1 mins
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By this Circular it is clarified that the meaning of the expression ‘Gross Amount’ appearing in Explanation to Rule 3(1) of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 shall not be applicable where execution of works contract has commenced or where any payment except payment through credit or debit to any account has been made towards works contract prior to 7-7-2009.

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