03 September 2014
we are manufacturing industry. we have constructed a building in one of our plant in India for manufacturing purpose. Currently production process is going on there. during the construction company has hired a contractor who have only supplied manpower. All building material is supplied by company to contractor. so i want to know that ,our liability of service tax is only for amount the bills of manpower charges supplied by contractor or we have to pay service tax on the whole amount of the building construction.say. Rs.1 crore is the amount of bills of the contractor & material cost is Rs.4 crore. so I have to pay serice tax on the whole amount of Rs.5 croere or on the 1 crore.
03 September 2014
Dear sir, can you please provide me any circular reference related to this query so that I can satisfy the auditors as they are demanding on the whole amount & it is the huge amount.