Liability of service tax in Turn-key job, Service Tax

[RAJAN KADREKAR]

Whether service tax is payable on the entire contract value of Interior Designer with Turn-key job having borne Composition Tax @8% under MVAT or only on 33% of such contract amount after deduction for materials @ 67% though actual material component in some items say POP work is lower than 67% (i.e.30% material) or Furniture Items having materail component higher than 75%. Kindly enlighten & oblige.with warm regards Rajan Kadrekar

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[Surender]

There is no specific exemption which is available for a composit contract undertaken by an interior contractor. However, that person may avail the benefit of notification no. 12/2003 for the cost of material involved in this contract.