Service tax on new furniture contract

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2015 I have entered in to new furniture works contract(including material and labour) of new constructed building.

I have registered under works contract service. So what is the rate of tax applicable to me ?

Prakash Mundada

Prakash Mundada (Expert)
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02 December 2015 if material portion seperately available in VAT records then total amount charged - material portion-vat amount is the service portion on which 14% + .5% of Swach Bharat Cess is to be levied

If material portion is not available then on notional basis
if original works then 40% of Total Amount Charged
if other than original works then 70% of Total amount charged is liable for Service Tax @14% + 0.5% of SB Cess

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Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2015 Here is the explanation of Original Works
(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 prefabricated or otherwise;

If i select notional option (labour cant be separated)
So what is the rate of service tax is applicable i.e. 5.8% (40% taxable) or 10.15% 70% taxable).

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