02 October 2016
Dear Sir I am a contractor providing works to KSEB Ltd (Kerala Electricity). Here materials are supplied by KSEB and the construction of Electical Line,or its Repairs etc are done by me with my labourers. My query is that , whether I have to Pay Service Tax on these type of contract works.
02 October 2016
This contract will be treated as works contract and service tax applicable on labour portion. If you are not a company then 50% of applicable service tax payable under RCM by KSEB Ltd. and you have to pay 50% of applicable service tax.
02 October 2016
Dear sir we are providing labour portion only, the materials are provided by the company.. then also it comes under Works Contract? Distribution of Electricity Comes under Negative List, can these works can be catogarised under such list.?
03 October 2016
As the material is involved in your works it is a works contract who supply the material is irrelevant. This work will not fall under Negative list category of distribution of elecricity. The distribution services provided by KSEB is only exempted.
Gross value of service under works contract includes value of materials supplied free of cost by the awarder. Notification 32/2007 dt 22.5.2007 as amended w.e.f . 07-07-2009.
03 October 2016
Yes you are right.sir, for the purpose of abatement it has to be included. If labour portion is separately ascertainable then service tax is payable on labour portion only as per valuation Rules.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
19 October 2016
Here the agreement with the contractor is only for labour portion i.e Gross value of of contract doesn't include material value. The value of material is separately accounted by the company.