Service Tax Payment

[SUNIL CHAVAN]

What is the % of contract value to be considered for Service Tax Payment on Turnkey contract?

100 %

14% service tax on 30%/40%/50%?

[CSSANJAY MALHOTRA]

Please specify the nature of contract???????

If it is Construction related projects and relates to Original Construction, then Service Tax is to be charged @ 14% on 40% of the value.....

regards

[SUNIL CHAVAN]

work contract

AI Summary

Service tax on original construction contracts applies to a defined portion of contract value as taxable base. For contracts qualifying as original construction, the taxable base is a portion of the contract value and service tax is chargeable at 14% on 40% of the contract value; classification of the contract as original construction is necessary to apply this valuation approach.