Members,
My query is relating to the provision of service as to repairs and maintenence of Electrical Transformers.
The nature of the activity is such that if total value of contract by tender is Rs. 50,00,000 the bill for Labour is raised for 7,00,000 and the rest is billed as materials and VAT is paid on such.(for example)
My contention is that before 01/07/2012, the cover of notification 12/2003 shall be avaliable and thus service tax shall only applicable on 7,00,000.
Due to the complexities in the new law governing service tax after 01/07/2012, what will be the effect on such contract.
Please advise,
CA Saurabh Patel
CAclubindia
