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Service tax
Sir,
I am giving contract for renovation of my house to building contractor and he is asking me to pay extra amount o/c services tax @ 15% on the whole amount of the contracted amount. The work is replacement of water pipes and electrical wires re-plastering of walls and painting and tile work.
I presume he should charge on the 25% contracted amount. Please help/advise me.
Replies (2)
"services tax @ 15% on the whole amount of the contracted amount.." NO
Service tax on works contract over only labour bill would be 15%. Otherwise its on 70% of contract value for repairs/renovation work (i.e 10.5% of total value).
In such case its always economical to bifurcate the bills of materials and labour charges.
Agree with Sir
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