Deepak Rathore (Managers ) 06 December 2016
owners of building going in for addition and alteration of area of their flats.(addl. fsi) thru works contract to a civil Contractor. Do the owner need to pay service tax and vat if yes then at what rates. the contracts present quotation states VAT @ 8% on gross value and ST @ 10.5%. He says he had charged on composite basis which we think it would be wrong as vat should be charged on materials & goods and ST on labour services. Please advice a proper right way out.Tks.
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Poornima Madhava (ACMA) 06 December 2016
There are 2 ways:
For more details on ST, refer rule 2A of Service Tax (Determination of Value) Rules