We are undertaking execution of interior work as per the drawings provided by the Architect. We have registered under Interior Decorator Service. The department says that since we are not giving any advice or consultancy our services are taxable under Construction (Finishing and Completion) Services and ST is payable on gross value without abatement. Is that correct?
Secondly, Tax is being arrived on the following method.
Sales as per Balance Sheet 10872500 *Labour Charges received 2065265 Advances received 1065208 TDS deducted 565902 Total 14568875 Value on which VAT paid @ 12%(-) 2586966 Sundry Debtors (-) 1065896 Total Taxable Value 10916013 Cum tax Value 9715212 ST payable 12.36% on 9715212 = 1200800
*Pure labour charges without any material involvement
My doubt is
Is TDS is includable in the Value?
We are charging ST in our invoices. But ST is calculated on the receipt basis? In such a case is cum-tax value is applicable?
CAclubindia
