new construction work

[Asked by Guest]

Dear Experts,

Please guide which one is correct, there is two (below) scenario of new construction work under service tax 40% (taxable) & 60%(exempted) ,

1. In this case one company charge service tax on 40% @14.5% (supply and apply include)
2. In this case another company charge service tax on 40% @14.5% and Sale tax on 60% @5% (supply and apply include)

Regard

Vikram

AI Summary

Works contract valuation: service portion taxable; abated portion may attract VAT depending on registration and local rules.
Valuation for works-contract service tax treats the service portion as gross contract price less value of goods transferred; where not separately determined, a prescribed fallback fixes a portion of the total contract price as the service portion. Gross price excludes VAT/sales tax. The remaining abated portion may be subject to state sales tax/VAT according to registration thresholds and state valuation tables, requiring VAT-specific analysis.