TaxTMI 
TaxTMI 
Determination of value of services involved in the execution of a works contract
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.... payable, if any, on transfer of property in goods involved in the execution of the said works contract; (b) value of works contract service shall include, - (i) labour charges for execution of the works; (ii) amount paid to a sub-contractor for labour and services; (iii) charges for planning, designing and architect's fees; (iv) charges for obtaining on hire or otherwise, machinery and tools used for the execution of the works contract; (v) cost of consumables such as water, electricity, fuel used in the execution of the works contract; ....
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.... shall be payable on seventy per cent. of the total amount charged for the works contract] Explanation 1.- For the purposes of this rule,- (a) "original works" means- (i) all new constructions; (ii) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; (iii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise; (b) "total amount" means the sum total of the gross amount charged for the works contract and the fair market value of all goods and services supplied in or in relation to the execution of the works contract, whether or not supplied under the same contract or any other contract, afte....
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....sp; (ii) amount paid to a sub-contractor for labour and services; (iii) charges for planning, designing and architect's fees; (iv) charges for obtaining on hire or otherwise, machinery and tools used for the execution of the works contract; (v) cost of consumables such as water, electricity, fuel, used in the execution of the works contract; (vi) cost of establishment of the contractor relatable to supply of labour and services; (vii) other similar expenses relatable to supply of labour and services; and (viii) profit earned by the service provider relatable to supply of labour and services; (ii) Where Value Added Tax or sales tax, as the case may be, has been paid on the actual value of transfer of property in goods involved in the execution of the works ....
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....der the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/ 2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503(E), dated the 20th June, 2003]. Explanation.--For the purposes of this sub-rule, the gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider.". . Rule 2A as substituted by notification number G.S.R. 431(E), dated the 6th June, 2012. [24/2012- Service Tax, dated the 6th June, 2012]. In the Service Tax (Determination of Value) Rules, 2006, in rule 2A,- 3C From 1st day of July, 2012 onwards. (I) in clause (i), after the words "value of property in goods", the words "or in goods and land or undivided share of land, as the case may be," shall be inserted; 3D From 1st day of July, 2012 to 28th day of February, 2013 (both days inclusive). (II) in clause (ii), in sub-clause (A),-- (a) the following proviso shall be inserted, namely:- "Provided that where the amount charged for works contract includes the value of goods as well as land or undivided share of land, the service ....