Service tax

This query is : Resolved

Ravindra Kumar (Querist)
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14 October 2015 Dear Sir,

I am working with a NGO. We have signed a agreement with a CSR to construct a new pond in their project area. The project details are as under-

Purchase of cement sand, pipe Rs. 15,000.00
Labour (Manpower) Rs. 2,00,000.00
Our NGO service charges Rs. 3,00,000.00
Total project cost Rs. 20,00,000.00

We have to implement the work and CSR will give us Rs. 20,00,000.00

Kindly suggest whether we have to charges services tax @14% of total project cost i.e. Rs. 20,00,000 or or only our NGO service i.e. 3,00,000/-

With regards

Ravi
9406501655

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 October 2015 Charge service tax on total project cost excluding material cost.

Ravindra Kumar

Ravindra Kumar (Querist)
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14 October 2015 Dear Sir

Thanks for your response. As per my understanding since we are purchasing the material and providing our services so service tax (14%) will also charge on the material cost also.

Kindly provide the reference so that I put the same to my management.

Regards

Ravi

Ravindra Kumar

Ravindra Kumar (Querist)
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