Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Service Tax This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

Works Contract Service Tax, Service Tax

Issue Id: - 108989
Dated: 4-8-2015
By:- anil goenka

Works Contract Service Tax


  • Contents

If a company done work for set of new Bank Branches in contracted structure . there scope of works start from civil work (alteration or demonstration of the structure ) to fixing of globe sign, painting, floor fiting, furniture all works. Is the work fall under Original Works. Pls Advice

Posts / Replies

Showing Replies 1 to 1 of 1 Records

Page: 1


1 Dated: 5-8-2015
By:- Rajagopalan Ranganathan

Sir

As per Explanation (1) (a) of rule 2 A of Service Tax (Determination of Value) rules, 2006-

"original works" means-

(i) all new constructions;

(ii) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable;

(iii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise.

Except the above all other works are not original works.

According to rule 2A (C) (ii) of Service Tax (Determination of Value) rules, 2006--

Where the value has not been determined under clause (i), the person liable to pay tax on the service portion involved in the execution of the works contract shall determine the service tax payable in the following manner, namely:-

(A) in case of works contracts entered into for execution of original works, service tax shall be payable on forty per cent. of the total amount charged for the works contract;

(B) in case of works contract, not covered under sub-clause (A), including works contract entered into for,-

(i) maintenance or repair or reconditioning or restoration or servicing of any goods; or

(ii) maintenance or repair or completion and finishing services such as glazing or plastering or floor and wall tiling or installation of electrical fittings of immovable property,

service tax shall be payable on seventy per cent. of the total amount charged for the works contract.


Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates