Material used in providing services

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CA ABHISHEK TEKRIWAL (Querist)
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27 September 2013 One of my client is engaged in providing small construction services(not residential house..but for ex shed,wall etc etc)he used his own material while providing services...SO I want to know whether he is also required to apply for TIN in addition to Service Tax Regn no.??
if Yes what will be consequences??

CA Suresh Jain

CA Suresh Jain (Expert)
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28 September 2013 He is required to apply for TIN.
So far service tax is concerned the value of material used and the VAT thereon charged in the invoice are deductible while calculating the value of service involved in execution of works contract

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

CA ABHISHEK TEKRIWAL

CA ABHISHEK TEKRIWAL (Querist)
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28 September 2013 Thanks alot...My client provides services to pvt ltd companies etc...so I think this would not affect your answer??am I right?and would you tell me please one more thing that what is % of abatement for such services??

CA Suresh Jain

CA Suresh Jain (Expert)
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29 September 2013 widely speaking, Any construction not intended to be sold is not eligible for any abatement.

The value of service portion in execcution of works contract is to be determined as per determination of of value rules and then tax @ 12.36% is to be charged. Since, you are providing service to a company and you are a non-corporate assessee the service tax too be charged is 4.18%
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disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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