WORKS CONTRACT

[SANJEEV JADHAV]

Dear Sirs, We are getting services like repairs of plant and machinery, Repairs Building, new construction of building, installaion of plant and machinery. We are getting services some from registered service providers and some from individual persons. How much service we have to pay for above incidents and whether we have to pay service tax on material cost also. Becuase we are suppling required materials to them. Please clarify above points.

[Sanjeet Kumar]

Dear Sanjeev, 

Here you stated no of service in your query and there is no of provision on on the basis of nature of service.

For example repair of Plant & Machinery is separate from repair of building which is covered by Work Contract. and in this exemption is given for 60% of service tax. also the service tax payment liability is on service receiver instead of Provider. 

So please stated the service specifically for which you have doubt.

  

AI Summary

Service tax liability on repairs and construction: works-contract treatment changes taxable value and may place liability on the service recipient. Service tax applies differently across repairs, construction and installation activities: repair of plant and machinery is distinct, repairs to buildings fall within works contract treatment with a partial exemption reducing taxable value, and tax liability can be on the service recipient under a reverse-charge mechanism; inclusion of materials supplied by the recipient in the taxable value depends on whether the transaction is characterised as a works contract or as a pure service.