Determination of Taxable Value

Type of Works ContractManner of computation of service tax
Original WorksService tax shall be payable on 40% cent of thetotal amount including such gross amount
(a) “original works” means-
(i) all new constructions;1.1.1            
(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;
In case of works contract, not covered under sub-clause (A), including works contract entered into for,—Service tax shall be payable on 70% of the total amount charged for the works contract
(i) maintenance or repair or reconditioning or restoration or servicing of any goods; or
(ii)maintenance or repair or completion and finishing services such as glazing or plastering or floor and wall tiling or installation of electrical fittings of immovable property, service tax shall be payable on seventy per cent of the total amount charged for the works contract

 

 

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