CA POONAM (Practicing) (81 Points)
18 July 2014Dear freinds please solve my following Query,
Weather service tax is to be paid on Service portion of bill if a works contract bill is having segregations of material value & service value, or 40% / 70% of gross value of bill is to considered for service valuation. Please note that it is non VAT bill i.e. there is no VAT on Material.
Pooja Mundra
(Article Assistant)
(43 Points)
Replied 18 July 2014
Dear Poonam,
As per sec 65B(54) Work contract means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods.
So above service will not be cover in works contract service.
Pooja Mundra
(Article Assistant)
(43 Points)
Replied 23 July 2014
Dear Poonam
I have wrongly interpreted your note.
If service charges are separately written in invoice then on whole service charges service tax will be leviable .
Thanks
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