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Service tax on repair&renovation of office building?

ARINDAM (Manager Internal Audit) (167 Points)

08 August 2014

is service tax is applicable on repair& renovation of office building? plz suggest me.

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Sarvesh (student) (287 Points)
Replied 08 August 2014

Yes it is applicable,under reverse charge.
As it is repairs & renovation, their must be labour & materilas both component include, so it vl be fall under works contract.
Liability : e.g Rs 10000/-
Receipent portion - 50% i.e Rs 5000/-
Further it is Repairs & renovation it vl fall under 70% - Rs 3500/- (5000*70%)
So the Service tax to be paid - Rs 432.6
(3500*12.36%)