Fabrication and Fixing of Anodized Aluminium Doors, Windows, Structural Cladding, ACP Works, ETc.

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prasanna kumar majji (Querist)
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04 November 2007 Dear Sir,
We deal with fabrication and fixing of anodized aluminium doors, windows, structural claddings, aluminium composite panel cladding works, etc. to the commercial buildings which are suitable for software offices, commercial offices, etc.

Our scope of work includes aluminium extrusions, in house fabrication people and o ur own labour for fixing. We paying VAT @ 4% on the total value of the work. We are registered with Provident Fund and ESI Corp.

Our query is that DO WE GET INTO THE WORKS CONTRACT SERVICE? If we in the works contract service, can we pay 2% tax on the total value of the work otherthan 12%, please give us a suggestion.

M Janak Rao

M Janak Rao (Expert)
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04 November 2007 1. if Turnover Above 8 Lakhs from 01.04.2007 and before 4 Lakgs Turnover is Exemptions.
2. Goods and Materails supplied while providing service tax is not payable on value of goods.
3. Labour wages and other benfits of Labour while providing service tax is not payable on value of payments.

4. The Service Tax is payable @12.36% on service charges of house fabrication etc.

M Janak Rao

M Janak Rao (Expert)
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04 November 2007 Or Tax on 33% of gross amount if gross amount inculed value of materails vide Govt. Notification No: 1/2006-ST dated 01.03.2006 Notification No. 19/2003 ST- dt 21.08.2003.

Example Value of Job Rs. 1,00,000/-
Service Taxable Turnover Rs. 33,000/-
Tax @ 12.36% on Rs. 33,000/-