carpentary work for cabin for Director in HO

[jagadesh kumar bhojanapalli Kumar]

Dear Sir,

 

We have engaged a local carpenter (individual person)  to make  a Office cabin in our Head office where carpenter is charging Rs.1,55,000/- towards charges including material cost.

Is it attract service tax or not , pl confirm 

regards,

b. jagadesh kumar

 

[YAGAY and SUN]

Under notification 30/2012-ST Service recipient is liable to pay the tax under partial reverse charge mechanism under WCT Services.

AI Summary

Reverse charge liability applies for works contract services; service recipient must pay tax under the partial reverse charge mechanism.
Where a works contract (carpentry for an office cabin) is supplied, the service recipient is obligated to discharge service tax under the partial reverse charge mechanism applicable to works contract services, shifting tax payment responsibility from the individual service provider to the recipient.