DEAR SIR,
WE HAVE CONSRUCTED NEW BUILDING FOR MFG PURPOSE NOW TIME ARISE FOR SATTLEMENT OF FINAL PAYMENT . IF LABOUR BILL IS UNDER 8 LACS TURN OVER AS PARTY AGREED TO GIVE DECLARATION ON RS 10 STAMP PAPER WHETHER SERVICE TAX WILL BE APPLICABLE OR NOT.IN CASE OF APPLICABLE WHAT WILL BE DEDUCTION PROCEDURE. PL CLARIFY.
Service tax not applicable on construction labor bills under Rs. 10 lakhs; affidavit on Rs. 10 stamp paper suffices. A query was raised regarding the applicability of service tax on a labor bill for building construction, with a turnover under 8 lakhs. The inquirer asked if service tax would apply if a declaration was provided on a Rs. 10 stamp paper. The response clarified that if the taxable service amount is below the threshold limit of Rs. 9 lakhs for registration and Rs. 10 lakhs for charging tax, no service tax is chargeable. An affidavit from the service provider would suffice in this situation. (AI Summary)
TaxTMI 
TaxTMI 
