Question ID : 16529

valuation

In a contract work, a contractee agrees to supply part of material, like cement to the contractor. Other materials are procured by the contractor. Should the value of such material supplied by the contractee be taken into account for the purpose of service tax by the contractor? If the contract is a pure labour contract where all the materials are supplied by the contractee, then should the value of materials also to be taken into account. Will the answer be different if most of the items are supplied are supplied by the contractee? only few items are purchased by the contractor?

posted by t sankar on May 27 2013 12:00AM