TMI BlogService Tax on Construction ServicesX X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax on Construction Services X X X X Extracts X X X X X X X X Extracts X X X X ..... be used by the staff of the company. Whether contractor charge service tax on bills raised for services provided by him to manufacturing company. 2.A contractor is engaged for building as hostel & institution building by a private institution giving BBA, MBA. The hostel is solely meant for students of such institution. Whether contractor charge service tax on bills raised for services provided by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him to Private institution. If your answer is no, please quote the particular section, notification and decided case laws. Thanks CA Balram Reply By NAND KISHOR SAH: The Reply: YES , CONTRACTOR CAN CHARGE S.T ON BOTH SERVICES. Reply By PAWAN KUMAR: The Reply: Yes service tax would be charged in both the cases. Reply By CA BALRAM PANDEY: The Reply: plz mentioned the exact section & rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Shiv Bansal: The Reply: Since construction is a service and both the examples given by you do not fall in the negative list of services hence no doubt the servcice tax is leviable in both the services. Why does it require a case law because nothing is doubtful? Thanks S.R. Bansal Reply By CA BALRAM PANDEY: The Reply: I require case law bcoz, service receiver is saying he is exempte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from paying service tax, and construction of residential complex have some issue where, receiver of services has given contract to make building for his personal use. Please advice me Contractor ---------->Constructing building for --------> xyz Co. Ltd.--------------> building shall be Used by his employees. Now, Contractor raised bill -------- >Labour+Material+Service Tax on Labour portion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = Gross Bill-----> to co. Now, In return Co. pays only Labour + Material saying the building is for self residential purpose hence no Service Tax shall be levied.. Please advice Thanks CA Balram Reply By Krishan Gopal: The Reply: HI, ans to first question it will be come under works contract. if contractor is a company, 100% liabiltiy of servcie tax of contractor if not 50% and rest 50% w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be manufacture co.under reverse charges.
further if original work ST will be charged 40% on invoice value, if not 70% on invoice value.
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