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Service tax on cladding work

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CA SAJANA

CA Job

75 Points Posted on 20 September 2013

Dear all...

Please help me by clarifying a doubt...

Is Glazing and Cladding work fall under the definition of Works Contract... Will notification No. 24/2012 is applicable to this type of Contract..? and if there is any change in the applicability of provisions if service provider obtains some material bills in the name of service receiver ?

Eg : Contract amount - 19 lakhs,

Material bill raised in the name of Service Receiver - 2lakhs

Let me know whether service tax liability of 12.36% is on the 40% of 17lakhs (19-2) or entire amount of 19 lakhs ? ?

Thanks and Best Regards,

Sajana E V

Replies (1)

Prashant Kini

Article Assistant

154 Points Posted on 20 September 2013

Yes glazing and cladding come within the preview of work contract and are accordingly liable to service tax under works contract service. In the above case liability to pay service tax under works contract service is on Rs. 19.00 lakhs when u pay under composition scheme. And also according to me it is Notification No 25 and not 24 that is applicable. There are in all 3 % applicable under composition scheme(40%,60 and 70%). No service tax liability if the work carried out is covered by Notification No 25