How to determine service tax liability.

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Bharat (Querist)
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28 December 2013 Respected Experts....

i have one client which is register under service tax law for the following taxable services construction services other than residential complex including commercial/industrial buildings of civil structure and work contract service

my question is that for the period 01/04/2013 to 30/09/2013 my clients turn over is 24,77,235 among this amount he charged 94850 for the labor charges and rest of amount is charged for Raw Material and he have all the bills and supporting for the Raw Materials, so my question is that how to determine the service tax liability for the period. and what would be the amount of service tax have to pay by my client.

@VaibhavJ

@VaibhavJ (Expert)
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28 December 2013 Hi

Pl refer: https://www.charteredclub.com/service-tax-on-under-construction-property-3-09/

Thanks

sahil jain

sahil jain (Expert)
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31 December 2013 Hi,

There will not be any service tax liability since the service tax component is below the threshold limit of Rs. 10 lacs and since he has kept separate records for service part and material part so there is no question of abatement. Hence there will not be any service tax leviable on Rs. 94,850 of labor charges.

Thanks

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