Service tax on work contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2016 if contractor mentioned labour and material in same invoice and he has not provide separate invoice for material and labour. whether service tax is to be charged @70% of total amount (other than original work) or only on labour portion.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 February 2016 Service tax to be charged on 70% of total amount.

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2016 thank sir
But in one invoice he bifurcate material and labour like

material 40000
labour 10000

Total 50000

whether service tax to be calculated on 10000 or on 70% of 50000.

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Abhishek Singh

Abhishek Singh (Expert)
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17 February 2016 Please note that if the material and labour are seprately mentioned then one had to charge service tax on labour portion and Vat on material portion.. else if there is no bifurcation one has to charge WCT on the same.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 February 2016 I agree with the above reply.