Government of India
Ministry of Finance
(Department of Revenue)
Notification
No.23/2009 – Service Tax
New Delhi, the 7th July, 2009
G.S.R. (E).- In exercise of the powers conferred by sections 93 and 94 of the
Finance Act,
1994 (32 of 1994), the Central Government, on being satisfied that it is
necessary in the public interest
so to do, hereby makes the following rules further to amend the Works Contract
(Composition
Scheme for Payment of Service Tax) Rules, 2007, namely:-
1. (1) These rules may be called the Works Contract (Composition Scheme for
Payment of
Service Tax) Amendment Rules, 2009.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. In the Works Contract (Composition Scheme for Payment of Service Tax) Rules,
2007, in rule 3,-
(A) in sub-rule(1), for the Explanation, the following Explanation shall be
substituted, namely:-
“Explanation.-For the purposes of this sub-rule, gross amount charged for the
works contract shall be the sum,-
(a) including-
(i) the value of all goods used in or in relation to the execution of the works
contract, whether supplied under any other contract for a consideration or
otherwise; and
(ii) the value of all the services that are required to be provided for the
execution
of the works contract;
(b) excluding-
(i) the value added tax or sales tax as the case may be paid on transfer of
property in goods involved; and
(ii) the cost of machinery and tools used in the execution of the said works
contract except for the charges for obtaining them on hire:
Provided that nothing contained in this Explanation shall apply to a works
contract, where the execution under the said contract has commenced or where any
payment, except by way of credit or debit to any account, has been made in
relation to the said contract on or before the 7th day
of July, 2009.”;
(B) after sub-rule(3), the following sub-rule shall be added, namely :-
“(4). The option under sub-rule (3) shall be permissible only where the declared
value of the works contract is not less than the gross amount charged for such
works contract.”.
[F.No.334/13/2009-TRU]
(Prashant Kumar)
Under Secretary to the Government of India
Note:- The principal rules were notified vide notification No.32/2007,-Service
Tax, dated the 22nd May, 2007 and published vide number G.S.R.378(E), dated the
22nd May, 2007 and amended vide notification No.7 /2008-Service Tax, dated the
1st March, 2008, published vide No. G.S.R. 151 (E), dated the 1st March, 2008.