Rate of service tax on design and development works

Sir,

A Govt. organization concluded a development contract with a company for design, development and productionization of a product. It involves both procurement of material and design and development. How service tax is to be paid on such activities.

Please give an early reply. it's urgent

 

- padmaja

Replies (1)

I think it will be treated as a Works Contract Service.

Then pay as per the rate of tax for that service only.

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