Mobilisation Advance and supply in service tax

YOU HAVE RIGHT HEARD THAT THERE IS NO SERVICE TAX CHARGABILITY ON MATERIAL 

BUT

SUPPLY OF MATERIAL MAY BE A SERVICE....

THEN MAY BE SERVICE TAX SHOULD BE CHARGED.....

4.12% is charged with materials ( 60% abatement from gross charges for materials only), if we pay on pure service then its 10.3% 

So pls tell me how much we have to pay

if its in work contract than you have to pay 4.12 % on amount.

U all pls clearly read my querry and give me a satisfied answer

Dear Ajith,

The rate of 4.12% is a composition rate under Works Contract Service. This means, you need to pay service tax on both service + supply, i.e total value of the contract. In the given scenario, you need to pay service tax on the total amount received for this contract i.e 100%

Thanks,

Ganesh