Turnover in case of works contract

The logic is right. Only the taxable part is to be considered as taxable services even for arrivinbg at the 10 lakh exemption as oer me. 

Thank you sir,

But can we put our argument with any provision or case law ? In case you can throw some light on the said argument. 

Look at definition 67 + look at case laws on inclusion of material in value of service. In normal circumstances if one were to provide the material and then provide the service spearately, the value of the service wouldbe only liable.

Please refer to the following:

Explanation to Para 3 of Notification No.33/2012-ST dated 20 June 2012 -

(B) “aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of the said Finance Act under any other notification.”

Section 66E(h) of the Act -

"service portion in the execution of a works contract;”

Rule 2A of the Service Tax (Determination of Value) Rules, 2006 -

“Determination of value of service portion in the execution of a works contract. — Subject to the provisions of section 67, the value of service portion in the execution of a works contract, referred to in clause (h) of section 66E of the Act, shall be determined in the following manner, namely :-…”