Service tax liability

Dear Sir,

I'm Brajesh Kumar.

Please clarify the follwoing qwery :

1. Service tax liability of contractors in the works contracts awarded after 01st July, 2012 pertaining to repairs and maintenance of assets as well as Railway's liability as service receiver where the schedule of supply items and labour portion is separately incorporated. In this case, it is not clear whether only labour part is to be considered for determining service tax or contract as a whole (i.e. 60 % of contract value) ?

2. The applicability of service tax for contracts awarded before 01st July, 2012 but contracts are not closed in time due to delay on part of Railway  (viz. delay in handing over site etc.) ?

Replies (1)

Since your service is related to the infrastructural project and recipient is Railway,you are exempted under mega notification no. 25/2012-ST dated 20.6.2012.Now back to your question as per Rule 2A of Service Tax (Determination of Value)Rules,2006 only service portion in the execution of work will be considerded for determination of value of Service Tax of work contract.

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