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Service tax on painting contractor

abatements 8125 views 6 replies

A painting contactor comes under which category as per Rule 2A(ii) ? It is a commercial project.  Can he claim 60% abatement (40% tax) if it is a new project ? Or he must be under maintenance or other works category (70% tax) ? Does he liable for VAT also ? Please share your view. Thanks in advance. vinodaca74 @ gmail.com

Replies (6)

you can rise the bill related to bill u can charge vat , and labour charge separate u can charge service tax

 

the service comes under works contract and he can avail the abatement of 40%.works contract presupposes transfer in property,hence VAT is a must.Otherwise he has to pay ST @ 14%

If 1 contract separte bills cannot be raised.

If it is original works then on 40% - 5.6%

If repair/ not original works then 7% - 9.8%

VAT payable as per local laws on compition basis or regular scheme as there is transpfer of property. 

The painting  contractor is not doing any 'original works' in terms of Rule 2A of the valueation rules even if the painting is being done on new building.As such Service tax shall be payable on 70% of the total amount charged for painting work.So far VAT is concerned he is required disharge only if the activity is either sale or deemed sale otherwise not.

Dear sir,

My client is a painting supervisor. He gets charge for supervision of painting work from his customer. His customers will pay for material and labour charges directly to his Suppliers and labourers respectively. He get charge for supervising the painting work. He is not a work contractor. He is expert painting supervisor.

Undet what category , he should take service tax registration. ?

He undertakes supervision charge for painting of various kinds of buildings - residential building, factory building, Residential complexes, Commercial complexes, Flats etc.

Regards

Sivaraman.A.R.

 

 

 

Sir....If paint contract is only taken labour contract of paint work, then what is the category of contract in service tax.

Regards

Deepak Bissa


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