Category of service

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Deepak Ashvekar (Querist)
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20 April 2013 My client is doing electrical wiring and fittings to Residential complex (new complexes) and the turnover is more than 20 lac. like to know

a) category of service for registration
b) abatement for taxable service.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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20 April 2013 it can be classified under

45. ERECTION, COMMISSIONING OR INSTALLATION SERVICE

Rate of Tax

Service Tax
10% of the value of services

education Cess
2% of the service tax payable

Secondary and Higher Education cess
1% of the service tax payable.

Ashish Vaish

Ashish Vaish (Expert)
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20 April 2013 Pl. inform, whether the contract of fitting wires is along with material or without material. In case it is with material, you are liable to ST under works contract. Register under works contract. You have an option to pay ST on 40% of the gross value. Tax rate is 12.36%.

In case it is without material, register under Erection, Commissioning or installation. Tax rate is 12.36% on gross value.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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20 April 2013 Sorry Mr Deepak the ST rate is 12.36%

Service Tax - 12%
Edu cess - 2%
SHEC - 1%

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