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Service tax

198 views 2 replies

harish

retired

25 Points Joined March 2017

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)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208868 Points Joined July 2016

"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.