Piece rate work is exempted from service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2014 1. I am doing Piece Rate Work (Plasting Work) in a Public Limited Company (Main Contractor doing Govt Project). Total Material Provided by Company at free of cost. I am utilising the material and compliting the Plasting work. I am not a vat delar. Can I take exemption of service tax under wrok contract service.

I am doing Piece Rate Work (Plasting Work) in a Public Limited Company (Main Contractor doing Private Project). Total Material Provided by Company at free of cost. I am utilising the material and compliting the Plasting work. I am not a vat delar. Can I pay the service tax in Reverse mechanism Total Labour charges @ 12.36% of 50% Labour charges under wrok contract service.

Rupesh Jain

Rupesh Jain (Expert)
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30 May 2014 if your agreement with the Co for supply of man power and your exempt limit is below Rs. 10 lacs then not required to charge service tax. if your limit is cross the you have to charge the service tax @ 3.09% and company pay 9.27% under reverse charge scheme.

if your agreement for bill as per pcs rate then you have to charge service tax @ 12.36% if your exemption limit is cross. otherwise not required to pay service tax.

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