04 June 2011
if establishment of cattle feed plant work order includes the following description of works: Part I: civil, structural, roads, compound wall. Part II: supply of mechanical, electrical and service equipments and Part III: labour charges for installation, testing and commissioning.
Then how to calculate the service tax on that service?
06 June 2011
Civil work is liable to tax under works contract service. 4.12% tax is payable on gross contract amount, if composition scheme is opted. Otherwise 10.3% of the value of labor. Supply of machinery attracts vat/cst. Labor charges for erection/installation attracts service tax @10.3%.
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