If one contractor is doing flooring or other work only and all materials related to work is supplied by the principal on free of cost and rate paid on basis of sqft basis. then what would be the service tax rate whether is 14% payable to contractor or its coming under reverse charge mechanism.
Kindly give ur views.
Payable will be - @ 5.6% on whole of contract 40% of 14% provided that cenvat credit not taken.
All materials will be provided by us at free of cost only. The contractor is not transferring any goods to us by the way of execution of work.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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