DEDUCTION LIMIT ON LABOUR BILL OF BUILDING CONSTRUCTION, Service Tax

[nandankumar roy]

DEAR SIR,

WE HAVE CONSRUCTED NEW BUILDING FOR MFG PURPOSE NOW TIME ARISE FOR SATTLEMENT OF FINAL PAYMENT . IF LABOUR BILL IS UNDER 8 LACS TURN OVER AS PARTY AGREED TO GIVE DECLARATION ON RS 10 STAMP PAPER  WHETHER SERVICE TAX WILL BE APPLICABLE OR NOT.IN CASE OF APPLICABLE WHAT WILL BE DEDUCTION PROCEDURE. PL CLARIFY.

Posts / Replies

[Pradeep Khatri]

If the amount of taxable service is below the  threshold limit ( i.e. Rs. 900000 for registration and Rs. 1000000 is for charging of tax), then no service tax will be chargable. An affidavit from the provider of the services in this matter will be sufficient.