Building Construction under Work Contract Tax

[RAM SHARMA]

Dear Experts,

We want to make Building with material, without material ,partially material or repair of building through under contractor or under own supervision. Will all these condition with labour expenses come under Work Contract Tax notification no 30/2012 dt. 20.06.12 reverse charge machenism.

Please advice.

Thaks

AI Summary

Reverse charge on works contract services: liability shared between small providers and corporate recipients; valuation governed by notification.
The reverse charge mechanism applies to the service component of a works contract where the provider is an individual, HUF or partnership firm and the receiver is a registered body corporate; the service tax on the service portion is shared equally between provider and receiver. The valuation notification dealing with works contract valuation governs the method for determining the service portion to be taxed under this sharing arrangement.