CA Manish Chainani (Business) (111 Points)
28 January 2014One of our client contacts with a person for construction of building please let me know wheather it construction service or work contract service . also let me know complete liabillty as per service tax
status
client Company
Other part Patnership Firm
Thanks in advance
CA Deepak Agarwal
(0)
(54 Points)
Replied 30 January 2014
Dear Manish,
You first need to classify it as construction service or works contract. i.e. if the contractor uses its on Material and Labour and doesnot disclose seperately in the invoice then it will be classified under works contract Service & if seperately disclosed then labour portion will be classified under construction service and on material portion VAT Needs to be paid.
Construction service in not covered under reverse Charge Mechanism but Works Contract Service is covered under reverse charge where 50%-50% service tax liablity is to be discharged by both Service receiver and Service Provider if service provider is Individual/HUF/Firm. ETC
thanks
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
