Which tax rate is applicable for works contract?
– Works contract services involving predominantly earth works (that is, constituting more than 75% of the value of the works contract) supplied to Central Government, State Governments, Local Authority, Governmental Authority or Government Entity shall be taxed at 5%.
What is the GST rate for tours and travels?
As per the Schedule of GST Rates for services approved by the GST Council on 19th May 2017, the supply of tour operator services attracts 5% GST rate with no input tax credit.
Is GST applicable on works contract?
However, the GST rate for works contract related to construction or building of a unit intended for the purpose of sale is 12%….GST on Works Contract.
| Ground for Difference | Works Contract | Composite Supply |
|---|---|---|
| Input Tax Credit (ITC) to the recipient of Supply | Not available (Apart from specific Situation discussed later) | Available |
What are the taxes applicable in hotel industry?
Hospitality and tourism industry in India is expected to rise from Rs….Hospitality and Tourism under the GST Regime.
| GST Rates for Hotels based on Room Tariff (Up to 30th September 2019) | |
|---|---|
| < Rs.1,000 | No Tax |
| Rs.1,000 -2,499.99 | 12% |
| Rs.2,500 -7,499.99 | 18% |
| = or > INR 7,500 | 28% |
What is the GST rate for government works contracts?
Further to explain, GST Rates on works awarded by Governmental Authority and Government Entity shall be henceforth taxable @ 18% and this shall also apply to all the works remaining in hand.
What is work contract tax in India?
On Sale of Goods, Vat is Applicable. On Sale of Services, Service Tax is Applicable. There are some services which are in nature of both goods and services, These are called Works Contract. Tax on Work Contract are called Work Contract Tax (WCT)
Is GST charged on travel?
Now, the other Tour Operator shall charge GST at the rate of 5% (i.e. Rs. 125/-). In this case, the entity can take input tax credit of Rs….GST on Tour Operator Services.
| Air fare (Economy class) from Delhi to Kochi and return 47620 GST charged by the Airlines@ 5% 2380 | 50,000 |
|---|---|
| Hotel Charges 26785 GST charged by Hotel@ 12% 3215 | 30,000 |
Can we take GST input on Travelling expenses?
ITC is not available in the case of travel, benefits extended to employees on vacation such as leave or home travel concession.
How GST is calculated on works contract?
Service tax was paid @15% on either 40% (on new work) or 70% (on repair, maintenance work). Due to no abatement/ composition is provided, it has led to significant increase in tax burden, especially the works contract is taxed at standard GST rate (which is 18%) and even though subjected to lower tax rate (12%).
Is GST applicable below 1000?
For the transaction value of ₹ 1,000 and less, the applicable rate is NIL. For the transaction value between ₹ 1,001 to ₹ 7,500, the applicable rate is 12%. For the transaction value above ₹ 7,500, the applicable rate is 18%.
Can we claim GST on hotels?
Services provided by the hotel is a taxable service in GST. The place of supply will always be the state/union territory where the hotel is located even if the guest is a registered person and has GSTIN of another state. Therefore, a hotel has to charge SGST and CGST always.
How much GST do contractors get?
12%
GST Rate on works contract services w.e.f 01.01. 2022
| Sl. No. | Chapter, Section or Heading | Old Rate (percent) |
|---|---|---|
| 1. | Heading 9954 (Construction Services) | 12% |
| 2. | Heading 9954 (Construction Services) | 12% |
| 3. | Heading 9954 (Construction Services) | 12% |
| 4. | Heading 9954 Construction Services | 12% |