Service provided of maintenance work

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kalpesh trivedi (Querist)
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30 December 2013 Dear Sir,

I want to know that what will be the tax implications for Services provided of Maintenance work to the Corporates. (Maintenance work include repairing & maintenance of office premises like painting work, replacement of wash basin, replacement chair handle etc.)

is there VAT & Service tax both will be applicable ???

kindly revert.

Thanks

CA DHEERAJ

CA DHEERAJ (Expert)
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30 December 2013 your service covered under works contract service you have to option to pay your service tax,
1. if you go for composition scheme (mean you don't seperate your goods value and service value)
the you have pay tax on 60 % value of gross amount charged
i.e. your gross amount charged form client 150rs.
then 60 % is 90 rs. (150x60%)
service tax = 90*12.36% 11.124

2 option you seperate your service portion and goods value portion for example
if you charged from client 150 rs.
60 rs. goods value
90 rs. service value
the you have paid tax on 90 rs. @ 12.36% = 11.124

in second option (value of works contract service shall include (The word
include indicates that the list is illustrative in nature)
i. labour charges for execution of the works;
ii. amount paid to a sub-contractor for labour and services;
iii. charges for planning, designing and architect's fees;
iv. charges for obtaining on hire or otherwise, machinery and tools used for the execution of the works contract;
v. cost of consumables such as water, electricity, fuel used in the execution of the works contract;
vi. cost of establishment of the contractor relatable to supply of labour and services;
vii. other similar expenses relatable to supply of labour and services; and
viii. profit earned by the service provider relatable to supply of labour and services;

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kalpesh trivedi

kalpesh trivedi (Querist)
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30 December 2013 We have appointed 1 contractor he buys the material on our behalf & he is only the labour contractor. So how we will raise the invoice to the Co.

1) For Example
We bought 1 item of Rs.100 & we are quoting Rs.200 to the company.

then what about VAT ??

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CA DHEERAJ

CA DHEERAJ (Expert)
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30 December 2013 sir i don't explain/write you solution here, if you want then you call me 9461054547