R.1 Short title and commencement.

       (1) These rules may be called the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007.
       (2) They shall come into force with effect from the 1st day of June, 2007.

R.2 Definitions.

       In these rules, unless the context otherwise requires,-
       (a) Act means the Finance Act, 1994 (32 of 1994);
       (b) section means the section of the Act;
       (c) works contract service means services provided in relation to the execution of a works contract referred to in sub-clause (zzzza) of clause (105) of section 65 of the Act;
       (d) words and expressions used in these rules and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act.

R.3 .

       (1) Notwithstanding anything contained in section 67 of the Act and rule 2A of the Service (Determination of Value) Rules, 2006, the person liable to pay service tax in relation to works contract service shall have the option to discharge his service tax liability on the works contract service provided or to be provided, instead of paying service tax at the rate specified in section 66 of the Act, by paying an amount equivalent to 1[four per cent.] of the gross amount charged for the works contract.
       2[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