Applicability of Service Tax on Construction Contract

This query is : Resolved 

13 August 2009 Sir,
We have entered an agreement for construction of set. At what rate the service tax is applicable and on what value

Regards
Sandeep

17 August 2009 If without materials under commercial construction on labour charges - 10.3% on gross amount.

If with materials then under works contract - option 1- total amount less amount charged to VAT under reguslar scheme or const of materials consumed x 10.3%
Option -2 4.12% on gross amount including materials.



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