Our company have given a contract to a Contractor for constructing a Factory building including some material provide contractor and balance provide by owner which is not included in contract value. He charged bill amount Rs. 100/- including own material. He charged service tax @ 12.36% on Rs. 40/- but owner's gave him Rs. 100/- material. Will we assess service tax on Rs. 80/- (40% of value 100+100)or Rs.40/- (40% of value 100)in which 6.18% is payable by Contractor and balance 6.18% is payable by owner. Am i write. Pl. advice.
Thanks
CAclubindia
