Service tax rate of erection & commissioning services

Respected All,

We have erected (only labour work is there) shed to  Ltd. Company, and they have asked to amend our ST2 for adding Erection & Commissioning Servies and we have applied also.

The Quastion is what rate we should charge ? (service was provided in Dec.15)

Is any abetment there..?

Please guide.

Regards,

Replies (4)

In my opinion it would be chargeable @ 14.5%. There is no abatement provision for erection and commissioning. There are valuation rules for works contract, but as there is only labour work it will not be covered under works contract. Hence full rate of service tax shall be applied.

Ok, It is Cleare, Will Charge 14 + 0.50%.

Thanks a lot.

 

 

It is essential to show separately on invoice as 14% service tax and 0.5% as swachh bharat cess. 

Yes Sir,

Bill Raised with 14% + 0.50% (charged separately), and client is accepted also.

Thanks,

Regards,

 

 

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