Works contract service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2013 Dear sir

i got service tax registration Certificate under head Works contract how much % charges in bill for collection for service tax, any abatement is applicable. if its abatement send me abatement slab and rate of percentage of service tax to be collected from Clint

Thanking You Sir

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 February 2013 (A) In case of works contracts entered into for execution of original works, service tax shall be payable on forty per cent. of the total amount charged for the works contract;

(B) in case of works contract entered into for maintenance or repair or reconditioning or restoration or servicing of any goods, service tax shall be payable on seventy percent. of the total amount charged for the works contract;

(C) in case of other works contracts, not covered under sub-clauses (A) and (B), including maintenance, repair, completion and finishing services such as glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property , service tax shall be payable on sixty per cent. of the total amount charged for the works contract.

For details Notification 24/2012 dated 6/6/2012 may be referred.

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