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

Works contract taxation: elect composition or taxable-value with abatement; assess contract divisibility before choosing.
Service tax for contracts supplying materials and labour in construction/fabrication can be met either by electing the works contract composition scheme with a fixed-rate levy on gross value, or by treating a portion of the contract value as taxable receipts with an allowed abatement reducing taxable value; precedent permits divisibility and vivisection of divisible contracts for valuation, so a cost-benefit analysis should guide the choice of regime.