Work Contract Service

[RAM SHARMA]

Dear Experts,

We have given a contract for new building construction in which Builder will  be bear every expenses except cement and steel. Cement and Steel will be provided by the owner. How will come out  the service tax value. Pl advice.

Thanks 

AI Summary

Service Tax Calculation on Building Contracts: Include Owner-Supplied Cement and Steel per Notification No. 30/2012. A query was raised about calculating service tax for a building construction contract where the builder covers all expenses except for cement and steel, which are supplied by the owner. Experts advised that the value of these materials should be included in the gross contract value for service tax calculation. The applicable service tax rate is 4.944%, including cess, with potential partial reverse charge applicability. Further discussion clarified that the builder is not taxed on their own materials, and the service tax liability is split between the contractor and owner if certain conditions are met, as per Notification No. 30/2012.