Original work contract or finishing activities

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2015 Greeting Experts

One of our client has rendered work contract services related to a newly constructed Hall in a building.

The work activities mainly comprises of Tiling, POP, Painting Work, wooden partition, wiring, fitting of electrical applances such as smoke detector, gates etc & gypsum ceiling work.

In my opinion all these activity fall under the FINISHING purview of the definition & thus attrct ST on 70%.

However in our client opinion it is a original contract ie a new construction since it was only the hall & later on they had hired us to convert it into their working office. ST liability will be on 40% of contract value.

Please advice.

Thanks in advance for your valuable input & contribution.

Best regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 July 2015 You are right it is a finishing work ST will attract at 70%. Alternatively you can advice him to pay 100% ST on service portion excluding materials involved.

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