TaxTMI 
TaxTMI 
WORKS CONTRACT
27 Jul 2013 
1 Reply 
1242 Views Asked by
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. (AI Summary)
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. (AI Summary)
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.