Dear Sir / Madam
My self Bharat Prajapati, Accounts Manager of Bhumi Construction. At present we received a Contract from ONGC Ltd. regarding construction of Auditorium for the purpose of ONGC staff. it is a tunkey project. i have some doubt on following question.
1) Is Service Tax applicable on construction of auditorium building?
2) The ONGC will hold our 12.36% of service tax from bill if we will not paid service tax is it right?
3) The ONGC hold 12.36 % instead of 10.30% due to the whenever tender prepared the rate of service tax was 12.36% if we paid service tax @ 10.30% they hold 2.06% of difference from our bill, is it right?
you are requested to solve my query at the earliest.
Bharat Prajapati
CAclubindia
