Service tax liability on labour job work

644 views 2 replies

I am a builder & engaged in government building/contruction works contract.

I am registered with DVAT department & not registered with Service Tax Department.

I quarterly file my DVAT returns.

Recently, I did a private building job work i.e. did some construction/renovation for a private party/indivudual.

I only did labour work. All the material was owned & supplied by the party.

I charged total Rs. 9.00 lakhs for the job work.

I took the entire payment by bank cheque.

I did not issue any invoice nor did I charge any kind of tax.

Would Service Tax be applicable in my case? If yes, how much?

What would be the DVAT liability in my case?

Replies (2)

your activity is taxable but you can avail threshold exemption of Rs. 10 lacs.

Thanks for the reply.

The work was done for the private individual for his own residence.

No work was done for commercial gain/profit of the party.

I did not comsume any of the material supplied for my own use.

Would my activity still be taxable?

What would be my DVAT liability in this case? I have opted for composition scheme of DVAT.

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