Service Tax on Interior Decoration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2011 Dear Experts

I am starting interior decoration business. Should i get my self registered with service tax. if so, can you tell me on what amount i should charge service tax & on what amount i should charge VAT ( Karnataka VAT). can i claim any abatement?

Anoop Gupta

Anoop Gupta (Expert)
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09 May 2011 You have to get registration under the category of interior designer and there is no such abatement available for these services. However if you sell any material during the course of your services, you may show the service portion and sale portion separately in your invoice and accordingly charge service tax and vat respectively thereon.

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2011 Thanks for your reply.

My bill will include the cost of material, labor payment & profit margin. These materials are bought & laborers are hired.
Should i charge Service tax on gross amount?

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CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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10 May 2011 Value of goods are eligible for exclusion as per noti.12/2003 provided you have documentary evidence. It is advisable to show value of materials separately in the bill. Your work is liable to VAT under works contract. When you claim 12/2003, department may call for evidence of vat payment.

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2011 Thanks for your reply.