Work contract
This query is : Resolved
28 September 2013
Please tell me ,Which option would be better and is my calculation correct?
for my client
Nature of service : Bus body Fabrication on New chassis supplied by bus owner
Total amt charged Rs. 1,000,000 per bus
Raw material+Tolls and other cost by our client is Rs. 700,000
Vat Input on above (5%+13%) Rs.90,000 Aprox
Labor charge paid to contractor for this work Rs.100,000
Material supplied by bus owner him self of Rs.150,000(What would its treatment ?)
Profit Rs. 50000.00
Vat Payable @ 13% on 10,00,000 i.e.Rs.130000
MY SOLUTION:
OPTION 1
Rule 2A (i)of Service Tax (Determination of Value) Rules, 2006
Total amt charged Rs. 1,000,000
Less : value of property in goods transferred
Raw material used by our client+VAT Rs.790000
Labor charge paid to contractor -nil
Value of service portion Rs.210,000
S.Tax @ 12% on Rs. 210000 = Rs. 25200
OPTION 2
Rule 2A (ii)of Service Tax (Determination of Value) Rules, 2006
Total amount charged Rs.1,000,000
40 % of original work = rs.400000
S.Tax @ 12% on Rs. 400000 = rs. 48000
Please Suggest me
for my client
Nature of service : Bus body Fabrication on New chassis supplied by bus owner
Total amt charged Rs. 1,000,000 per bus
Raw material+Tolls and other cost by our client is Rs. 700,000
Vat Input on above (5%+13%) Rs.90,000 Aprox
Labor charge paid to contractor for this work Rs.100,000
Material supplied by bus owner him self of Rs.150,000(What would its treatment ?)
Profit Rs. 50000.00
Vat Payable @ 13% on 10,00,000 i.e.Rs.130000
MY SOLUTION:
OPTION 1
Rule 2A (i)of Service Tax (Determination of Value) Rules, 2006
Total amt charged Rs. 1,000,000
Less : value of property in goods transferred
Raw material used by our client+VAT Rs.790000
Labor charge paid to contractor -nil
Value of service portion Rs.210,000
S.Tax @ 12% on Rs. 210000 = Rs. 25200
OPTION 2
Rule 2A (ii)of Service Tax (Determination of Value) Rules, 2006
Total amount charged Rs.1,000,000
40 % of original work = rs.400000
S.Tax @ 12% on Rs. 400000 = rs. 48000
Please Suggest me
29 September 2013
Dear mr. Jangid ,your both the versions are not correct. In fact body building is a process of manufacture and therefor covered under the negative list. No service tax is payable.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
Message likes :
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30 September 2013
Thank you... Sir.
as per your advise please confirm me that
Does Bus body fabrication not covered by work contact service as per declared service of new service tax law?
as per your advise please confirm me that
Does Bus body fabrication not covered by work contact service as per declared service of new service tax law?
30 September 2013
Bus body building, in my opinion, is not a taxable service, it is part of Negative list.
****For clarification and Premier service pl contact group.blr@gmail.com
*Disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case.
****For clarification and Premier service pl contact group.blr@gmail.com
*Disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case.
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