Mobilisation Advance and supply in service tax

Ajay s (Accounts Officer) (243 Points)

10 February 2011  

Dear All

One of our projects is in works contract. and it is a single work oder including supply. The work order is telling service tax is 4.12% and they will re-imburse the amount after producing chellan.

Now we received some amount and 85% of the amount is supply .Whether we have to pay service tax on 100% or 15%

Somewhere I heard that supply of materials have no applicability of service tax