Painting work with material, Service Tax

[Sanjay Vasava]

Dear Sir,

We have given painting contract to party with material. He has furnish the work and now he is trying to submit an invoice. Please explain how can calculate service tax and VAT.

Thanks & Regards,

Sanjay Vasava

Posts / Replies

[Himansu Sha]

If the material component is segregated in the invoice and the tax on the full value will be levied on the service value

If the material component is not segregated, the tax will be levied on 40% of the Gross value.

If it is a repair & maintenance activity, s.tax will be on 80% of the value.

[Gorantla Bhaskar Rao]

Dear querist,

I endorse the views of shri Himanshu Sha, an expert with slight correction in respect of taxable value being 70% in place of 80% when material value is not identifiable.

[Himansu Sha]

Ok it should be 70%. I made a mistake