SERVICE TAX

Queries 666 views 2 replies

ONE WOODWORK CONTRACTOR MADE A TABLE CHARGED Rs.100/- FOR MATERIAL AND SERVICE CHARGES PLUS SERVICE TAX. IS IT IS RIGHT TO CHARGE THE SERVICE TAX ON BOTH SERVICE CHARGES AND MATERIAL COST. AS PER THE AGREEMENT HE IS TO BE SUPPLY A TABLE FOR Rs.100/-

Ex. TABLE COST =          100

Ser.Tax 10.3%       =            10.3

TOTAL COST       =         110.3

IS IT RIGHT TO PAY THE SERVICE TAX ON BOTH MATERIAL AND SERVICE CHARGES ?  AND HE IS NOT SEPERATED THE SERVICE CHARGES AND MATERIAL COST IN THE INVOICE.

 

 

Replies (2)

If they are unable to separate disclosed material value and labour charges then your calculation is correct.

It is a transaction in goods, no service tax is payable.

Even if it is taken that it is a work contract, he can take abatement of 67% in value.


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