Service tax on civil works

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Hi, I have rented an industrial property to a company. Before agreement it was decided to complete some civil work at the property for which the tenant will pay half share. Now the tenant have issued me the purchase order and is telling me to raise the invoice against it. I want to know what is the applicable service tax rate for this civil work and will there be any kind of C.S.T applicable on this civil work.
Replies (3)

Without Monetray numbers we can not answer this....

Before signing the agreement, it was decided that proper flooring as per the specifictaions given by the tenant will  be done for which the tenant will bear Rs. 35 per sq foot. The area is around 10,000 sq foot.

 Now the tenant has raised the purchase order for civil work. 

I want to know that if I raise the invoice agianst him, will any kind of tax be payable on this service.

If yes then how much, and if no can I raise the invoice without adding any tax on it.

 

Since, tenant is raising the purchase order / invoice on the property owner, it shall be construed that the tenant is providing the services relating to civil works to the owner. Thus, the services should be taxable in the hands of the tenant provided the threshold limit is exhausted.


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