DEVELOPER FIRM EXECUTING RESIDENTIAL CUM COMMERCIAL PROJECT HAS SUB CONTRACTED ENTIRE LABOUR INVOLVED IN THE PROJECT AND CONTENDS THAT SERVICE TAX IS NOT PAYABLE UNDER CONSTRUCTIO OF COMPLEX SERVICE AS SERVICE TAX IS PAYABLE ON ' LABOUR PORTION ONLY' AND THAT SUB CONTRACTOR HAS TO PAY THE SERVICE TAX ON LABOUR CHARGES RECEIPTS BY HIM. IS THE CONTENTION CORRECT ?
IF THE DEVELOPERS REGISTER HIMSELF UNDER 'WORKS CONTRACT' SERVICE AND CLAIM EXEMPTION OF TURNOVER INVOLVED IN TRANSFER OF PROPERTY IN GOODS/MATERIAL -IS IT CORRECT ?
Developer Firm's Service Tax Dispute: Works Contract Service Tax Shared 50% Under Notification 30/2012 A developer firm subcontracted labor for a residential and commercial project and questioned whether service tax is payable under 'Construction of Complex Service.' The firm argued that the subcontractor should pay the service tax on labor charges. The response clarified that the project falls under 'Works Contract' service, and according to notification no 30/2012, service tax is payable on the service portion of the works contract. The tax burden is shared 50% between the service provider and receiver, depending on their legal status and location within the taxable territory. (AI Summary)
TaxTMI 
TaxTMI 
