I engaged a civil engineer to repair and renovate a portion of my house,a few months ago.He employed a team of workers to set up a new structure with grills and shade,and some new walls inside the property,and also to carry out general repairs.The person gave me a quotation in his personal letterhead before the work started,which was accepted by me and ceratin payments were made with reference to that,from time to time,as the work progressed.Now,at the time of final settlement with him,the person is demanding service tax from me,on the entire work done(as per quotation,though,the matter of service tax was not disclosed to me earlier).I would seek your opinion on the following:-
1.Is the entire work subject to service tax,and if so,how it can be avoided or minimised.
2.Which kind of consulancy or contractual jobs(relating to repair and renovation to old building)are exempt from service tax.
Can a person charge service tax from a recipient without prior notification?

Admin’s Response:

Currently, Tax Gyan experts only answer Income Tax and Home Loan related queries. Nevertheless, publishing the query here to invite comments from users