Works contract

Dear Raja

As you are providing services to Ltd. company than you are Service Providers. There is 60% abetment in for construction services under work contract.

You will have to pay 50% service tax on Taxable bill amount. (i.e 40% of bill amount)

Example:- Bills Raised during the year Rs. 10000.00

               Abatment            60%                  6000.00

               Taxable Amount                          4000.00

               Service Tax                                  247.20 

               (4000*50%*12.36%)

Balance 50% service tax shall be paid by service receiver (i.e. Ltd).