Painting work with material

[Sanjay Vasava]

Dear Sir,

We have given painting contract to party with material. He has furnish the work and now he is trying to submit an invoice. Please explain how can calculate service tax and VAT.

Thanks & Regards,

Sanjay Vasava

AI Summary

Understanding Tax on Painting Contracts: Service Tax on 70% if Materials Aren't Separated, 40% on Gross Otherwise. A user inquired about calculating service tax and VAT for a painting contract that includes materials. An expert explained that if the material component is separated in the invoice, tax is levied on the service value. If not separated, tax applies to 40% of the gross value. For repair and maintenance activities, the service tax is on 70% of the value, corrected from an initial mistake of 80%. Another expert agreed with this explanation, confirming the 70% taxable value when the material value is not identifiable.