works contract service, Service Tax

[THYAGARAJAN KALYANASUNDARAM]

One of my customer is providing building painting contract. Since he is

collecting 12.36% on 40% of the contract value i.e. 4.944% and remitting

the same to the service tax department. I would like to know whether this contract

under original contract or other than original contract. If so it will come under

finishing services. Then he need to pay 12.36% on 70% of the contract value.

can any one explain which one is correct with the suitable example.at. If

Posts / Replies

[Kamal Jhanwar]

Sir,

This painting work will be covered under Completion and finishing service and therefore, he should discharge liability on the 70% portion of the value of the works contract. You may refer the judgement of Tribunal-Mumbai in case of "The Carpentar V comm of C.Ex & ST, Pune-III/Mumbai-III,2014 (36) STR1137 = 2014 (9) TMI 179 - CESTAT MUMBAI read with N/N 1/2006 in support of this answer.