Go AD-FREE with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Work contact

Queries 292 views 1 replies

Jitendra

Accountant

25 Points Joined December 2013

Dear all,

we are newly engaged in Repair and Maint.( New Building, Old building, roof celling, and interior.) taking work orders.

we are a pvt. ltd. company and recently applied for service tax registration.

My query is that we are providing services to individual Customer, Corporations, Builders and other association.

Please let me know how to charge Service Tax while issuing Invoice to Customer/Client as per providing services with Material and without Material.

Please suggest.

Thanks in advance

Replies (1)

From what I have understood, you undertake "Works Contract".
When your service includes usage of material and the same is passed on to the service receiver, you do not have to charge any service tax and the liability to pay ST lies on the service receiver under reverse charge.
However, if there is not material involved, then the services are in the nature of Consultancy and you are supposed to charge ST on the entire amt and pay the same to the govt.

Hope that helps