category of service of work contract

[RAM AVTAR]

we are doing tile work (composite contract) for DLF.  we issue 2 separage bils. one composite bill and another for service tax separage.  Being DLF is builder and developerse.  whether we conver under construction services or work contract services.  further for abaitment (actual material) we take abitment under 12/2003 or rule 2 of work contract scheme

[YAGAY and SUN]

Dear Ram Avatar,

As you have not specified the nature of services which are being provided by you to DLF, therefore, it is not feasible to comment on classification of the taxable services. For abatement, you would have to conduct COST 'BENEFIT ANALYSIS' between the Notification No.12/2003 of Rule 2A  (BSBK judgment) that which one will be more beneficial to you.

Best Regards,

 

Pradeep Khatri

AI Summary

Service classification: decide whether tile composite contracts are construction or work contract services; compare abatement options. Classification question concerns whether tile installation under a composite contract for a developer is Construction Services or Work Contract Services, and whether service tax should be shown separately. For abatement of actual material value, a factual cost benefit analysis is required to choose between Notification No.12/2003 and the computation under Rule 2A of the work contract scheme as interpreted by BSBK; definitive advice depends on the detailed nature of the services provided.