SC: Works contract, where service tax had already been paid, no option to pay service tax under the Composition Scheme could be exercised

M/s NAGRJUNA CONSTRUCTION CO. LTD  vs GOI & ANR (Supreme Court)

 

Service Tax - Works Contracts (Composition Scheme for Payment of Service Tax) Rules, 2007

 

In respect of a works contract, where service tax had already been paid, no option to pay service tax under the Composition Scheme can be exercised. Assessee who wants to avail of the benefit under Rule 3 of the 2007 Rules must opt to pay service tax in respect of a works contract before payment of service tax in respect of the works contract and the option so exercised is to be applied to the entire works contract and the assessee is not permitted to change the option till the said works contract is completed.