Categorization in works contract service
This query is : Resolved
aishwaria sahni
(Querist)
26 June 2015
The company I'm auditing is into contracting of installation and supply of electrical fittings. Now they are charging Service Tax on 40% of the entire amount i.e categorizing it as original works.
My question is if they are categorizing it right? Or should it be categorized as finishing service and be taxed at 70% of the gross amount charged?
My question is if they are categorizing it right? Or should it be categorized as finishing service and be taxed at 70% of the gross amount charged?
CA R SEETHARAMAN
(Expert)
26 June 2015
Their categorization as original work is in order. It is not a repair and maintenance work taxed at 70%.
CA Prasanna Ojha
(Expert)
26 June 2015
Agreed With Mr Seetharaman
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