Avinash Kumar (CA Final Student & Working as Deputy Manager Accounts) (79 Points)
13 February 2013Dear All
I would like to know applicability of service tax on construction of industrial building.
Suppose a company gave contract to build a industrial building to contractor for the expansion, how the company is liable for service tax?
In this case company is bearing Iron, cement, bricks rest matarials and labours are of the contractor.
Please suggest
Thnx & Regards
HARENDRA KUMAR
(ACCOUNTANT)
(89 Points)
Replied 13 February 2013
Service Tax will be 50-50%
1. Liability of Service provider 50 %
2. Liability of Service Receiver 50%
Thanks
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 13 February 2013
| Originally posted by : HARENDRA KUMAR | ||
 |
Service Tax will be 50-50% 1. Liability of Service provider 50 % 2. Liability of Service Receiver 50% Thanks |
 |
Pls give supporting or some refrence to ur ans.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 13 February 2013
In pure labour contracts there is no 50:50 of joint charge.
Only if the contractor is doing works contract and is not a pvt co then that applied.
ST wouldbe payable @ 12.36% on the labpour charges of the contractor provided his services have exceeded Rs. 10 lakhs in the previous year.
Sanjay Gurnani
(Article assistant)
(33 Points)
Replied 13 February 2013
Dear All,
I would to know whether the applicabiliyt of service tax is correct in the following cases is correct or not;
If service provider is located in New Delhi and providing the services in Jammu & Kashmir which is of new construction work, and the provider charges Service tax amount on the invoice, whether the receiver will pay the amount to the vendor including service tax or excluding service tax.
What if the service provder gives professional/consultancy services to receiver which is in Jammu & Kashmir???
Please suggest me
CAclubindia
