17 August 2015
dear expert, whether the textile company has following work outsourced to contract basis- 1) mending work- total bill raised for the year approximate 4200000. 2) Folding work- total contract bill amount of Rs approximate 500000
please advise me for above given situation, what is applicable of service tax, if yes what is tax rate and also limit of service tax applicable.
19 August 2015
Construction of building is original work for which service tax payable on 40% value. Whereas for building repair work service tax payable on 70% value. Your work of mending and folding is not original work. Cloth manufacturing is the original work in your case.
20 August 2015
@Narayan:- Please go through detailed provision of work contract service, there are various If's & but's which you need to trace out for application of service tax.
In mega notification, there is exemption to Printing without material, moreover even material are provided then you havwe to check under which catagory it will fall, there are three sub type in work contracts.
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