TaxTMI 
TaxTMI 
What is the % of contract value to be considered for Service Tax Payment on Turnkey contract?
100 %
14% service tax on 30%/40%/50%?
Service Tax Payment
17 Jul 2015 
2 Replies 
1116 Views Asked by
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. (AI Summary)
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. (AI Summary)