Indirect tax (service tax)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2014 I have Some Practical Doubt in rule 2(1)(d)reverse charge mechanism.
Assessee giving work contract service to hotels company. As per rule 2 (1)(d)he is giving service of (maintenance or repair or recondition or restoration or servicing of any goods including such gross amount)motor rewinding of services. This service is about rewinding and reconditioning the water pumps or others similar motors.
The bill details is follow,
1. motor rewinding xx
2. parts change of motors xx
3. Labour charges. xx
_____
Gross Total Amt xxx
The MAIN QUESTION arise from here is,
In such Situation on which amount the SERVICE TAX should be charged?
1- On LABOUR CHARGES ONLY OR,
2- On GROSS TOTAL AMOUNT.
Please Reply the same.
Waiting For Yours Valuable Answer,
Thank you,

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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02 October 2014 Kindly refer to Rule 2A of the Service Tax (determination of value) Rules, 2006.

Here two options are given either pay VAT on goods and service tax on service component or as option pay service tax on 70% of the gross amount charged for the work contract....

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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