Work contract - labour

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2016 Dear Expert,

how much we charge service tax on site work (labour).

pls let me know asap, pls share notification also

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 August 2016 You have to charge 15% service tax on site work(labour). See Rule 2A of service tax (Determination of valuation Rules).

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2016 if materials included then ?

Pls also suggest part of TDS, if we are paying lumsum to our vendor for labour and materials then tds would be @ 2% ?

secondly, only tds will applicable for deduction or WCT will required when payment made to our vendor

actually or client is deducting wct. (principal contractor)

Pls suggest

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 August 2016 If material is included service tax applicable only on labour portion see the Rule.
Yes TDS will be 2% including materials.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2016 it is a lumsum amt, we can't seperate

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 August 2016 Then service tax at 15% payable on 40% in case of original work and 70% on other than original work.

Querist : Anonymous

Querist : Anonymous (Querist)