Query regarding chargeability of st

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2015 whether repair & maintenance service provided to a housing society is chargeable to service tax?
if it is chargeable to ST, then tell me who have to pay tax ?
IN THIS SERVICE MATERIAL AND LABOUR BOTH ARE PROVIDED BY SERVICE PROVIDER, THEN IT MAY ALSO FALL IN THE CATEGORY OF WORKS CONTRACT . 1.WHETHER ABATEMENT IS THERE ? 2.HOW MUCH PORTION IS ASSUMED TO BE SERVICE PORTION? 3.GIVE WORKINGS ALSO WITH DUMMY FIGURES.

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2015 IN THIS SERVICE MATERIAL AND LABOUR BOTH ARE PROVIDED BY SERVICE PROVIDER, THEN IT MAY ALSO FALL IN THE CATEGORY OF WORKS CONTRACT .
1.WHETHER ABATEMENT IS THERE ?
2.HOW MUCH PORTION IS ASSUMED TO BE SERVICE PORTION?
3.GIVE WORKINGS ALSO WITH DUMMY FIGURES.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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19 July 2025 1. Is Repair & Maintenance Service to Housing Society chargeable to Service Tax?

Yes, repair and maintenance services provided to a housing society are liable to service tax under “Business Auxiliary Services” or “Works Contract Services” depending on the nature of service.
When both materials and labor are provided by the service provider, the service falls under Works Contract Service.
2. Who is liable to pay Service Tax?

The service provider is liable to pay service tax on the value of taxable service.
If the housing society is registered under Reverse Charge Mechanism (RCM) for certain services, they may be liable to pay tax, but generally for works contract service, the provider pays.
3. Is there any Abatement for Works Contract Service?

Yes, abatement is provided for works contract services.
As per Notification No. 30/2012-ST dated 20 June 2012, 25% abatement is allowed for works contract services.
4. How much portion is assumed to be service portion?

After 25% abatement, the service portion = 75% of the total value.
This means only 75% of the contract value is considered as taxable service.

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