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Service tax on painting contractor

Vinod (CA in Practice) (445 Points)

12 August 2015

A painting contactor comes under which category as per Rule 2A(ii) ? It is a commercial project. Can he claim 60% abatement (40% tax) if it is a new project ? Or he must be under maintenance or other works category (70% tax) ? Does he liable for VAT also ? Please share your view. Thanks in advance. vinodaca74 @ gmail.com

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6 Replies

JAGANATHAN R ACMA, SAP(Fi-Co) (Manager Accounts and Finance) (915 Points)
Replied 12 August 2015

you can rise the bill related to bill u can charge vat , and labour charge separate u can charge service tax

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Radhakrishnan (B.Com) (28 Points)
Replied 16 September 2015

the service comes under works contract and he can avail the abatement of 40%.works contract presupposes transfer in property,hence VAT is a must.Otherwise he has to pay ST @ 14%

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 17 September 2015

If 1 contract separte bills cannot be raised.

If it is original works then on 40% - 5.6%

If repair/ not original works then 7% - 9.8%

VAT payable as per local laws on compition basis or regular scheme as there is transpfer of property.

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 17 September 2015

The painting contractor is not doing any 'original works' in terms of Rule 2A of the valueation rules even if the painting is being done on new building.As such Service tax shall be payable on 70% of the total amount charged for painting work.So far VAT is concerned he is required disharge only if the activity is either sale or deemed sale otherwise not.

1 Like

Sivaraman A R (.) (1040 Points)
Replied 26 August 2016

Dear sir,

My client is a painting supervisor. He gets charge for supervision of painting work from his customer. His customers will pay for material and labour charges directly to his Suppliers and labourers respectively. He get charge for supervising the painting work. He is not a work contractor. He is expert painting supervisor.

Undet what category , he should take service tax registration. ?

He undertakes supervision charge for painting of various kinds of buildings - residential building, factory building, Residential complexes, Commercial complexes, Flats etc.

Regards

Sivaraman.A.R.