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Service tax on electricity and water charges in works contra

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V Venkata Krishna

consultant

31 Points Posted on 10 June 2014

My client is a civil contractor who under takes construction/repairs/interiosr of commercial/factory buildings

in some cases the electricityrand water is supplied by the client

1. In this juncture can service tax authorities increase the contract vaule beyond our agreed terms and charges service tax in the difference amount ?

2. If it can be doen what is the percentage of vaule to be increased ? (i,e, how to quantify the amount involved)

3, And what will be rate

4. is there any judicial orders on this

thanks in advance

Replies (1)

Harendra Kumar

Tax Advisor

1502 Points Posted on 10 June 2014

It is not issuse the service tax dept. it is the issue only you and your contractor such services are taxable as per terms and condition. Further Service Tax Dept. has no power to extent your contract increasing you and your contractor. You and your client self increase the same contract and service tax appliacble as per terms and condition.