06 April 2013
Sir, i am doing reapair and mantenance of smps power supply which convert 220v ac to 48v dc in BSNL.the rate offer for repairing unit is including material. I have purchased electronics component from market and utilised those component for repairing the unit.BSNL is paying 50% service tax.I want to know whether my service comes under work contract.If yes then how much service tax is applicable. if no then what will be the service tax. Thanks
07 April 2013
As your work includes supply of matterial also you have to register under VAT Act also and pay tax on the consumed material at appropriate rate. Secondly,on the balance part service tax liability arises. If BSNL pays 50%(of what? is it of the whole billed amount?)then you have to calculate the full liability,reduce the amount already paid by bsnl and pay the balance to the govt.The rate adopted by bsnl will be the same for your part also. Let ST experts also view this annswer and add,if any required.
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