Service tax on works contract

Please look negative list

hi,

does fabrication work under works contract comes under the purview of service tax ?

Pls check it out whether the nature of work comes under negative list or not.  If it comes under negative list, no need to pay tax.  If it does not fall under negative list, then you have to pay service tax under Reverse charge mechanism.  Pls refer the notification number 30/2012.

I feel it, material supplied by the service receiver and fabrication work was done at the premises of the service provider then service tax will be applicable.  if the material purchased and send to the workshop of the fabricator then service tax will not be applicable and excise duty will be applicable. If service tax is applicable as above we have to see whether reverse charge method is applicable or not

G V S Subrahmanyam

Your company is laible to pay 50% service tax (i.e instead of 12.36%, pay 6.18% on total taxable service) under the reverse charge mechanism vide notification no. 30/2012. The company may claim abatement under notification no. 26/2012. See also Rule 2A of Service Tax (Determination ofValue) Rule.