Service tax rate on construction service ?

Parvinder Singh (Accountant) (32 Points)

17 January 2017

A company providing construction services with material (with sand/cement/steel/carshers etc)

What % of service tax is applicable . ?

should they liable to charge VAT also ?

Regards,

Parvinder Singh

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180914 Points)
Replied 17 January 2017

Yes to both levies, it comes under works contract.

Parvinder Singh (Accountant) (32 Points)
Replied 18 January 2017

Sir

What % of Service tax have to charge ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180914 Points)
Replied 18 January 2017

Depends upon different parameters, but if its original work, 6% is charged on total value of contract. (determined by Rule 2A(ii))

For more details Refer: https://www.investsaver.com/service-tax-work-contract/

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