16 April 2013
We carry out repairs and waterproofing and some of our clients are private bungalow owners, is service tax applicable for such works or is there an exemption for it similar to construction of bungalows or residential bldg of less than 12 units
16 April 2013
1st of all there is a exemption of rs 10 lkahs if the total services provided in the last year is upto 10 lakhs. (33/2012) Now - Work Contract Meaning 65B(54): WC means a contract wherein transfer if property in goods involved in the execution of such contract is leviable to tax as sale of goods AND such contract is - for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any Movable or Immovable property OR - for carrying out any other activity or a part thereof in relation to such property.
hence if you providing the material too, it comes under the works contract service and is taxable. now yes there are few exemptions also the tax is not on whole value there is abatement too. you have to refer below notifications, 25/2012 entry 12, 13, 14, 29. for exemption 30/2012 for reverse charge rule 2-A of service tax valuation rules, 2006 for abatement.
for exemptions and taxability this has to be cheked that too whom you providing the service.
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