Dear All,
We are giving small works contract to contractor for installation of machine or repair and maintance, we provide him maximum of material required for the process apart from small like welding rod etc are used by him.
now we are paying service tax on 70% of value.
My question is ...does the value of material given by us to our services provider will be included in tax compution.
regards
ram vyas
Debate on Including Free Materials in Service Tax Assessment Awaits Apex Court's Decision in Bhayana Builders Case. A discussion on a forum addresses whether the value of materials supplied free of cost to a contractor should be included in the assessment of service tax. The initial query raises the issue of whether these materials should be factored into the tax computation. Responses vary, with one opinion stating there is no requirement to include such materials, while another highlights ongoing litigation and differing interpretations by revenue and assessees. The matter remains unresolved, pending a decision from the Apex Court, specifically referencing the Bhayana Builders case. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
