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

Clarification on Service Tax: Building Repairs Get 60% Exemption; Service Receiver Liable for Tax, Not Provider. A user inquired about service tax obligations related to various services, including plant and machinery repairs, building repairs, new construction, and installation of plant and machinery. They sought clarification on whether service tax applies to the material costs, as they supply the materials themselves. A respondent clarified that different services have different provisions. For instance, building repair falls under a works contract with a 60% service tax exemption, and the liability to pay service tax lies with the service receiver, not the provider. The respondent requested more specific details to provide further assistance.