Build your professional network on facebook via our app Go to app
 
<< Prev  18 of 21 in Topic  Next >>
Topic : cost control ideas
  Rate : 
Posted in Community :

Construction Planning & Management

 
Asked by : svns yarramsetti, Accounts Manager, pnr infra india pvt ltd
Industry : Construction
Functional Area : India
Activity: Question posted: 01 27 2009 09:02:20 +0000, 3 answers, 4614 views, last activity 07 06 2010 20:18:08 +0000
 
Share
 
 
 
 

if we are giving sub contract work for structure design (civil), upto brick work and plastering including material but not included steel, cement, on which amount the service tax effected.

total labour work + bricks +sand + metal his responsible

we supply cement & steel only

plz. give me suggession in this regard

 
 Top Answer :
Rating : +1 

for labor Service tax 12.36% X 30.% x 100% of work value

for Material tax 12.5% x 70% x 100 of work value



[ Delete ]
[ Edit ]
Report Abuse
by   kota siva rama prasad, Sector Engineer (Q.S), hiranandani township pvt ltd  | 01 27 2009 12:29:35 +0000
  Answered by     RAMANATHA PRABHU N, Chartered Accountant  | 12 21 2009 11:35:40 +0000
[ Delete ]
[ Edit ]
Not Rated

You are asking for service tax application on construction contracts right?

1. In case your annual turnover from all contracts do not exeed Rs.10 laks, you don't have any service tax obligation, otherwise you have following options;

a) You can opt for compounding, if you opt this pay 4% of the gross contract value as service tax, if so you will not be availed any CENVAT credit. or

b) Pay 10% on taxable service as service tax and avail CENVAT credit.

 

  Answered by     Naimish , Construction-Heavy, Gourav Engineers  | 02 02 2009 11:12:03 +0000
[ Delete ]
[ Edit ]
Not Rated

There are differant schemes of VAT & Service tax for Civil works.

1. Composite VAT @ 5% + Service Tax 4.12% on 100% amount.

2. VAT @ 12.5% on 70% of Total amount & Service Tax 12.36% on 30% of Total amount.

You have to check with your CA that if you are paying the taxes to your sub-contractor than will you get it's set-off or not ? because it depands on Tax scheme selected by you.

If steel & cement is in your scope than better idea is to issue a work order only for Labour works & pay them only 12.36% Service Tax. ( Sand , Metal & Bricks will be in sub contractors scope , but you have not to mention in PO, it will be your mutual understanding. Because as you know for sand ,cement & metal nobody is giving you Tax invoice with VAT, so why to pay VAT to sub contracor un necessaryly & create complications.

 
Rate:
Submit
Viewers also viewed
Load Bearing Construction vs RCC frame construction
 
166 referals 41 arguments, 26626 views
Is it really important that construction organization to have PMP certification, but then...
 
4 referals 38 arguments, 6565 views
People buy a second home for many reasons, which, inter-alia, include as an investment for...
 
25 referals 2 comments, 474 views
more...  
Unanswered Questions (424)
House switching solutions help make folks shift derived from one of destination to yet another...
 
0 referals 0 answers, 0 views
Small business moving is amongst the nearly all abnormal occasions for some corporations. The...
 
0 referals 0 answers, 0 views
Small business moving is probably the many unconventional occasions for the majority of...
 
0 referals 0 answers, 0 views