Applicability of service tax

A man installed the Computer systems in a place which is using for the conducting online examinations. The companies like(TCS,SIFY.etc) are giving contracts to the man saying this much systemd required for the examination. per system they will pay the amount. For invigilators and electricity amount will be reimbursed. 

Let me know is it a works contract or purely service. and rate of tax applicable.?

Replies (1)

System are bought and installed by asseessee (i.e. Men) then it will be only service and not a works contract.

However, it should be noted that,  For invigilators and electricity amount of reimbursed will be added to Gross amount of service.

in short following calculation will have to do for service tax:

Amount received per system                         XXXX

Add: Reimbursed from service reciver          XXXX

 Assessable value of service                         XXXX

Service tax @ 14%                                       XXXX

SBC @ 0.5%

KKC @ 0.5%

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