Service Tax on Work Contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2011 Dear sir

My company engage in construction (Land purchase and Construction of Resident complex)

My company hearing a contractor for build up of building, against issue work order.
Work Order terms & condition is we are supply only Steel and Cement and other material is contractor’s scope. Contractor registration in Service Tax for “Work Contract Tax” on 4.12%
In this case, we are supply Rs. 30 of steel and cement
Contractor work done Rs. 70/- (Labour + Other all Materila) they give rate consolidated

My question is party bill raise Rs. 74.12(Bill Rs. 70 and Service tax charged on Rs. 4.12 (Rs. 100 @ 4.12%)
Should we payable of service on Rs. 70 or 100 ?

Please gaude

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 June 2011 The contractor has to include the value of material supplied ( free of cost) by the awarder for calculating service tax. Accordingly ,the service tax billing pattern of the contractor would appear as follows:-
Bill amount - Rs. 70.00
service tax on Rs.100/-@4.12% Rs.4.12
Total - Rs. 74.12

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