The gross amount includes: 1. Value of the material transferred 2. Labour costs 3. Amount paid to subcontractors for labour and services 4. Fees for planning, design and architect fees 5. Fees for the purchase of machines and tools used in the execution of the works contract, leased or not 6. Costs of consumables such as water, electricity and fuel 7. Other similar expenditure related to the provision of labour and services 8. Profit We booked an apartment with Unitech in 2010 and paid in installments. However, the builder delayed the handover of the property and now with the property notice, he charged an additional payment @Rs,179/- per square foot. They clarified that they made the payment as WCT for civil and electrical works – Rs. 2326473 / – + service tax on WCT – Rs.
5094365 /- + Additional fees on free materials issued under a construction contract – Rs. 9177011 / – + Addl. Fees on finished material – Rs. 487609 / -. We have already paid the service tax with instalment payments. Should we pay an additional S.S. tax? and what will be the WCT rate in West Bengal, where the construction of UNITECH will be carried out? One of those services referred to in the third part concerns services of the works contract. The service element in the performance of a works contract shall be excluded in so far as they are used for the construction or performance of a works contract for a building or structure or part thereof, or for the construction of foundations or the manufacture of relief works, with the exception of the supply of one or more of the abovementioned services. In the case of a new building, does the entrepreneur have to pay VAT or CST as well as S. Calculate the tax or can he opt for a composition scheme and calculate only S.Tax? As regards court judgments, it is settled case-law that a works contract may be separated into a contract for the sale of goods and a contract for the provision of services. This entry means that the service part of the works contract is subject to the services tax.
Madam, our manufacturing company, we regularly give employment contracts, equipment that we provide to service providers who carry out manufacturing and assembly work (status of service provider: companies and individuals). At the end of the work, they submit an invoice only for the service part on a tonnage basis. From now on, people with the status of company levy a service tax of 14.5% on the value of the invoice. Person status Person who charges 7.25% on the value of the invoice. My question is what is the rate of service tax in % for business status and individuals. This type of service falls under which service: employment contract If the consideration is in cash – the gross amount charged for the service provided or to be provided; Certain services provided by a contractor are exempt from any service tax. These services are indicated in Communication 25/2012 of 20.06.2012 that no reduction was previously required for the performance of works contracts. Previously, VAT had to be paid on the works contract. The service tax was paid at 15% on 40% (on new work) or 70% (on repair and maintenance work). Since the introduction of the concept of negative list, all activities related to construction / real estate are regulated by a single word “construction contract”, which has been defined in Article 65B (54) as follows: Our company has a company registration and also a service tax number. My company has awarded a contract for aluminum partition work with materials and the total value of the work is Rs 154609.00 (including material, labor, freight, etc.). I received an invoice for the above work as the amount above.
I have to pay the service tax, How can I calculate the service tax to be paid by me. Even assuming that the transaction is taxable from the outset in the category of taxable services, no valuation method is prescribed for the payment of tax on services provided by the builder/developer to the landowner. It was only in 2012 that the Board of Directors presented Circular 151/2/2012-ST of 10.02.2012, in which the methodology for evaluating the service component in the services provided to the owner is defined in the light of the JDA. I have a question, I am reg under construction contract in Hyderabad.is this correct to calculate the VAT debt. Basic amount + service tax 14.%=Total*Reduction %=VAT liability. If it`s not corrector, tell me the right one. I need clarification with the Hyderabad VAT Act Please clarify that if the service provider that determines the share of service in the work order in accordance with Rule 2A(i) of the 2006 Value Determination Rules, there is a liability for the recipient of the service (company), i.e. 50% below RCM or full ST must be paid by the service provider. This means that the works contract is treated as a service and the tax is collected accordingly (and not as goods or partial goods/services). I appreciate the clarity of your knowledge base.
Just a clarification. Assuming the total contract price is 100, which includes 70% as the cost of supplying equipment from outside India and 30% as the cost of planning/assembling/commissioning, then the taxes payable would be 100X 40% x 14% as a service tax and 70x 2% as a CST. Am I right? Please correct me if I am wrong. In this case, if this is true, I have to increase the billing to the customer so that I can afford to pay the service tax on my side too. .
