23 March 2015
Dear sir, I have a query regarding Works contract
I provide service of construction which comes under works contract We issue bill like this
Repairing job Rs 100000 ST @ 12.36% on 35% Rs. 4326 Total amount Rs. 104326
From the invoice one can say that value of service(35%) n value of material(65%) are determinable therefore service tax will be charged on service portiin only as we do in invoice now my query is
1) how to show it in Form ST 3?. should we show total amount charged i.e. 104326 n show 65% as other deduction or directly show only 35% as gross vale of service n ignore 65% ?
2) i am still in confusion it is determinable or not ...or i should go with 40% criteria original works n take 60% as abatement. Kindly note that we have separate complete record of material which on an average comes arnd 65% only
23 March 2015
1. Show the abatement amount separately in ST3. 2. The abatement on original works is 30% .Hence, service tax payable on 70% of the value . 50% of such shall be payable by service provider and other 50% shall be payable by service recipient.
24 March 2015
Sir...i think abatement on original work is 60% but that is only when we cant segregate(determine) service n material portion. But our invoice specifically mention service portion 35% n material 65%. N also we have complete record of material which will be approx 65% only.
CAclubindia
