TaxTMI 
TaxTMI 
Dear Expert,
One of our customer is executing the painting works contract, we would like to know whether we should take the value of the contract 40% as original work (or) 70% as finishing service.
Thanks in advance.
Service Tax on Painting Contract.
05 Apr 2017 
5 Replies 
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Service tax valuation on painting contracts predominantly treated as taxable under finishing services rather than original works.
Works contracts for execution of original works are taxable on forty percent of the contract value, while works contracts not covered as original works-including finishing, completion and restoration services such as painting-are taxable on seventy percent of the contract value. Pure labour contracts for painting are treated as full-service supply and the entire consideration is taxable, with possible small taxpayer exemptions for the service provider; reverse charge does not apply to pure labour. (AI Summary)
Works contracts for execution of original works are taxable on forty percent of the contract value, while works contracts not covered as original works-including finishing, completion and restoration services such as painting-are taxable on seventy percent of the contract value. Pure labour contracts for painting are treated as full-service supply and the entire consideration is taxable, with possible small taxpayer exemptions for the service provider; reverse charge does not apply to pure labour. (AI Summary)