supply materials as well as labour for construction of new building fabrication work

[nandankumar roy]

dear sir,

what will be service tax calculation in case of billing made included  labour charges  as well as materials charges  on new factory construction and fabrication works

Regards,

nandan

AI Summary

Service Tax Options for Construction: Register Under Works Contract at 4% or Opt for 33.33% with Abatement A user inquired about calculating service tax for billing that includes labor and materials for new factory construction and fabrication work. An expert responded that the service falls under work contract services, offering two options: register under works contract (COT) and pay 4% of the total bill, or register without COT and tax 33.33% of the bill with a 66.67% abatement. Another expert mentioned a 4.8% tax rate under the composition scheme, advising a cost-benefit analysis before choosing any option. The discussion emphasized analyzing the financial implications of each tax scheme.