TaxTMI 
TaxTMI 
Dear Sir,
Please explain service tax on Site preparation & Clearance work contract.
I have received same work invoice with service tax calculating on gross value. Is it ok or not??
Thanks & Regards,
Sanjay Vasava
Service tax on site preparation & clearance work contract
24 Sep 2016 
14 Replies 
1929 Views Asked by
Guest 
Service tax on site preparation taxable under forward charge; ensure provider registration and invoicing compliance to avoid liability.
Site preparation and clearance services (site formation, excavation, earthmoving, demolition) are taxable under a forward charge: they are not exempt or in the negative list. Charging service tax on the gross contract value is proper where the provider has crossed the threshold and holds registration; the provider's registration number must appear on the invoice and can be verified online. Place-of-provision rules may affect reverse-charge applicability. Recipients should require registration proof or a threshold declaration and maintain risk-management checks to avoid penalties for non-compliance. (AI Summary)
Site preparation and clearance services (site formation, excavation, earthmoving, demolition) are taxable under a forward charge: they are not exempt or in the negative list. Charging service tax on the gross contract value is proper where the provider has crossed the threshold and holds registration; the provider's registration number must appear on the invoice and can be verified online. Place-of-provision rules may affect reverse-charge applicability. Recipients should require registration proof or a threshold declaration and maintain risk-management checks to avoid penalties for non-compliance. (AI Summary)