Works Contract Service Tax

[anil goenka]

If a company done work for set of new Bank Branches in contracted structure . there scope of works start from civil work (alteration or demonstration of the structure ) to fixing of globe sign, painting, floor fiting, furniture all works. Is the work fall under Original Works. Pls Advice

AI Summary

Company Seeks Clarification on Service Tax for Bank Branch Construction Under Service Tax (Determination of Value) Rules, 2006 A company inquired if their contracted work for new bank branches, including civil work, signage, painting, flooring, and furniture, qualifies as 'Original Works' under service tax rules. The response clarified that 'Original Works' under the Service Tax (Determination of Value) Rules, 2006, includes new constructions and specific alterations to structures. For original works, service tax is payable on 40% of the total contract amount. Other works, such as maintenance or finishing services, incur service tax on 70% of the total amount. The company's activities would need to be assessed against these criteria to determine the applicable tax rate.