TaxTMI 
TaxTMI 
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
Works Contract Service Tax
04 Aug 2015 
1 Reply 
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Original works classification determines lower taxable service portion, while finishing and repair services attract a higher taxable portion.
The Rules define original works to include all new constructions, specified additions or alterations to make abandoned or damaged structures workable, and erection, commissioning or installation of plant, machinery, equipment or structures. Where a contract qualifies as original works, a lower proportion of the total contract amount is taken for service tax; contracts not covered as original works-including maintenance, repair and completion or finishing services such as glazing, plastering, tiling or installation of electrical fittings-are subject to a higher proportion of the total contract amount for service tax determination. (AI Summary)
The Rules define original works to include all new constructions, specified additions or alterations to make abandoned or damaged structures workable, and erection, commissioning or installation of plant, machinery, equipment or structures. Where a contract qualifies as original works, a lower proportion of the total contract amount is taken for service tax; contracts not covered as original works-including maintenance, repair and completion or finishing services such as glazing, plastering, tiling or installation of electrical fittings-are subject to a higher proportion of the total contract amount for service tax determination. (AI Summary)