is service tax is applicable on repair& renovation of office building? plz suggest me.
Service tax on repair&renovation of office building?
ARINDAM (Manager Internal Audit) (167 Points)
08 August 2014
Sarvesh
(student)
(287 Points)
Replied 08 August 2014
Yes it is applicable,under reverse charge.
As it is repairs & renovation, their must be labour & materilas both component include, so it vl be fall under works contract.
Liability : e.g Rs 10000/-
Receipent portion - 50% i.e Rs 5000/-
Further it is Repairs & renovation it vl fall under 70% - Rs 3500/- (5000*70%)
So the Service tax to be paid - Rs 432.6
(3500*12.36%)