31 May 2011
Our Charitable Trust is registerd under Bombay Public Trust and is planning to give construction contract of Building to one contractor for Girl's Hostel. Is Contractor liable to pay Service Tax in the Construction bills raised on Trust?
31 May 2011
In the hands of the contractor, it is a 'works contract' liable to be taxed u/s 65(105)(zzzza) at normal rate of 10.30% or at compounded rate of 4.12% In view of that, the contractor will levy service tax on the invoice raised in the name of trust.