Service Tax on White wash & Painting

[Vinay Sharma]

Dear Sir,

Contract is for White wash and Painting with material and labour.

The contractor is not registered under service tax act and do not charge service tax on bill.

Will it be regarded as works contract and are we liable to service tax under reverse charge. If yes, then service tax will be 6.16% of 40% of bill value or 6.16% of 70% of bill value.

Regards.

AI Summary

Service Tax on Whitewashing and Painting Contracts: 70% of Bill at 6.18% via Partial Reverse Charge. A discussion on a forum addresses whether a contract for whitewashing and painting, including materials and labor, is subject to service tax under the reverse charge mechanism. The contractor is not registered under the service tax act and does not charge service tax. It is clarified that the service tax applies to 70% of the bill value at a rate of 6.18% under the Partial Reverse Charge Mechanism. Additionally, credit can be availed. The discussion also touches on how such contracts are categorized as works contracts, which involve the transfer of property in goods during execution.