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Service tax on construction contract
On of my client a Trust is going to construct a school building by giving a contract to some builders (which includes material & labour charges). Kindly advise the service tax implication on this contract.
Replies (4)
Since it is a contact for original work
Abatement of 60% in terms of Notfn No. 26/2012-ST
Service Tax is payable on 40% value of gross amount of contract.
Service Tax 14%
Swatch Bharat Cess 0.5%
Krishi Kalyan Cess 0.5%
Total 15% (on 40% value)
The Reverse charge, if any, applicable is to be examined as per Notfn No. 30/2012-ST.
The abatement is as per Notfn No. 24/2012-ST
Sir,
Thanks for the valuable reply, kindly also elaborate whether reverse charge is applicable on TRUST.
l
No reverse charge is applicable in your case.
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