Supervision activtiy - Category under service tax

[Vijay Chitte]

Supervision activtiy, fall under which catagory of service?

[Surender Gupta]

Kindly elaborate that what type of activity is under supervision? what are the responsibility and other conditions assigned to supervsion activity?

[Guest]

Dear Sir, I our case for our new premises renovation work we have appointed architect who will be charging 8% towards professional fees for drawing and design and 8% towards supervision work for renovation activity. Whether this renovation can fall under any category of service.

[Surender Gupta]

Merely, supervision activity is not taxable.

[Guest]

The type of activity involved is that we have appointed a consultant for the activity of renovation of our premises for which they are charging 10% towards drawing and architect fees and 10% towards supervision fees. Whether the above supervision fees will attract service tax.

[Surender Gupta]

Yes it will be taxable as in relation to architect services.

AI Summary

Supervision activity classification affects service tax liability; supervision tied to architect services is taxable under service tax law. Mere supervision, standing alone, is not taxable; supervision charged in relation to architect services is treated as part of the architect service and is taxable, so classification depends on the nature and contractual allocation of the supervision fees.