Service tax on renovation- urgent

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2015 how can we differentiate between renovation and repair?

if renovation service is provided by a company to a body corporate under work contract service. then whether renovation is considered as original work for calculating service tax.
example
bill of renovation RS 55,00,000

now service tax to be calculated on 40% value
OR
service tax to be calculated on 70% value.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 December 2015 Renovation is considered as original work and service tax to be calculated on 40% work.

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2015 thank sir
here renovation include glazing, plastering, painting, electrical fitting, floor and wall tiling etc of a building. Here building is renovated to look new with new tiles, furniture, electric fitting etc.
Whether all this work consider as original work.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 December 2015 The above work will be considered as repair work for which service tax payable on 70% value.

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