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Value of service portion in execution of work contract shall be equivalent to the gross amount charged for the works contract less the value of property in goods transferred in execution of said works contract. It has been explained in the TRU, Mo F, Go I letter No D. Due to above amendment, the service tax liability in respect of third category (maintenance, repair, completion and finishing services such as glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property) has been hiked as from 1st October, 2014, service tax would be computed on 70% of the amount charged instead of 60%, due to which the effective service tax rate on the total amount charged would be hiked from 7.416% to 8.652%, out of which 4.326% (3.708% under existing provisions) of total amount charged would be paid both by service recipient and service provider.