Service tax on works contract

Dear All

I would like to know applicability of service tax on construction of industrial building.

Suppose a company gave contract to build a industrial building to contractor for the expansion, how the company is liable for service tax?

In this case company is bearing Iron, cement, bricks rest matarials and labours are of the contractor.

Please suggest 

 

Thnx & Regards

Replies (4)

Service Tax  will be 50-50%

1.  Liability of Service provider  50 %

 2. Liability of Service Receiver  50%

 

Thanks

 

 

Originally posted by : HARENDRA KUMAR

Service Tax  will be 50-50%

1.  Liability of Service provider  50 %

 2. Liability of Service Receiver  50%

 

Thanks

 

 

Pls give supporting or some refrence to ur ans.yes

In pure labour contracts there is no 50:50 of joint charge.

Only if the contractor is doing works contract and is not a pvt co then that applied.

ST wouldbe payable @ 12.36% on the labpour charges of the contractor provided his services have exceeded Rs. 10 lakhs in the previous year.

Dear All,

I would to know whether the applicabiliyt of service tax is correct in the following cases is correct or not;

If service provider is located in New Delhi and providing the services in Jammu & Kashmir which is of  new construction work, and the provider charges Service tax amount on the invoice, whether the receiver will pay the amount to the vendor including service tax or excluding service tax.

What if the service provder gives professional/consultancy services to receiver which is in Jammu & Kashmir???

 

Please suggest me

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