Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Valuation of service portion in works contract

Save Share

This query is : Resolved

Amit (Querist)

02 July 2013 I read the following Example some where .
There is A a contractor who construct the building
for B.A is purchase material from c . example as below to found taxable value on which service tax is charged

Gross amt. received by (A) excluding taxed Rs.95,00,000

Add: Fair market value of goods supplied by the service receiver excluding tax Rs.10,00,000

Less : Amt. charged by service receiver for such goods or service received by service provider Rs.5,00,000
The taxable valu is Rs. 1,00,00,000

Now in above example ,the service receiver is B .But in the line "Fair market value of goods supplied by the service receiver excluding tax " who is service receiver ? and in the line "Amt. charged by service receiver for such goods or service received by service provider " who is service receiver and service provider ?Plz explain me above example.

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)

08 July 2013 The SR is B and SP is A. In instant example is case where the goods are supplied by SR to SP for providing service...As ST is applicable on gross amount of service its value will be added therein.....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now