Reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2014 what is origional work under work contract? is renovating bussiness primises is origional work laible @40 % Servise tax in composit scheme or 60 % as repair & maintainance

Ganeshbabu K

Ganeshbabu K (Expert)
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16 July 2014 For origiinal works now taxable portion is 40% of invoice value
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If RCM Applicable 50% of service tax will be the service receiver responsibility
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And service provider have to claim only 50% of service tax in his invoice

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2014 but what is origional work?

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Ganeshbabu K

Ganeshbabu K (Expert)
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17 July 2014 Original works’ means –

(i) all new constructions
(ii) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable (iii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise – Explanation I(a) to Rule 2A of Service Tax (Determination of Value) Rules, 2006 –

**same definition adopted for exemption notifications as per definition clause 2(y) of Notification No. 25/2012-ST dated 20-6-2012 effective from 1-7-2012.
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doubt in notification number check in notifiation 24/2012 also

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2014 i have a company primises and now i want to fit new tiles in back side of primises and paiting partially, dut to vastu consultancy already buit primises are required to modify so it would chargiable @ 40 % or 60 % that means it is origional work or not?

Ganeshbabu K

Ganeshbabu K (Expert)
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17 July 2014 This cannot be termed as ‘original works’ and service tax @ 60% should apply.
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Budget Update:

1)Now, the 60% scheme is abolished w.e.f. 1-10-2014.
2)In brief, the earlier 60% slab has been merged with 70% slab.
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For More Budget Updates FOllow me

https://www.facebook.com/pages/Ganeshbabu/439383716201583?ref=hl

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Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2014 sir if the goods which is involved in work contract but vat is not charged on material so still reverse charge required or only required when sales tax/vat is charged on bill

Ganeshbabu K

Ganeshbabu K (Expert)
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24 July 2014 If your service provider does service along with material it is workcontract whether he charges vat or not and hence will come under reversecharge

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