Ashok Katarmal (Manager Accounts) (75 Points)
25 January 2016Respected All,
We have erected (only labour work is there) shed to Ltd. Company, and they have asked to amend our ST2 for adding Erection & Commissioning Servies and we have applied also.
The Quastion is what rate we should charge ? (service was provided in Dec.15)
Is any abetment there..?
Please guide.
Regards,
Pragya
(CHARTERED ACCOUNTANT)
(104 Points)
Replied 25 January 2016
In my opinion it would be chargeable @ 14.5%. There is no abatement provision for erection and commissioning. There are valuation rules for works contract, but as there is only labour work it will not be covered under works contract. Hence full rate of service tax shall be applied.
Ashok Katarmal
(Manager Accounts)
(75 Points)
Replied 25 January 2016
Ok, It is Cleare, Will Charge 14 + 0.50%.
Thanks a lot.
ganeshan k
(asst mgr)
(94 Points)
Replied 25 January 2016
It is essential to show separately on invoice as 14% service tax and 0.5% as swachh bharat cess.
Ashok Katarmal
(Manager Accounts)
(75 Points)
Replied 25 January 2016
Yes Sir,
Bill Raised with 14% + 0.50% (charged separately), and client is accepted also.
Thanks,
Regards,
CAclubindia
