1. Article 16 of the Detailed Rules for the Implementation of the Provisional Regulations on Business Tax stipulates that since June 5438+ 10/day, 2009, if taxpayers provide construction services (excluding decoration services), their turnover shall include the prices of raw materials, equipment and other materials and power used in the project, but not the prices of equipment provided by the construction party.

In other words, if the equipment is purchased by the construction party, then the price can be exempted from business tax.

In addition, according to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance of People's Republic of China (PRC) on Several Issues concerning Business Tax (Caishui [2003] 16), "the taxable turnover of other construction and installation projects should not include the value of equipment, and the specific equipment list can be listed by the provincial local tax authorities according to their actual conditions." You can ask the local tax authorities for details.

2. Item (3) of Article 5 of the Provisional Regulations on Business Tax stipulates that if a taxpayer subcontracts a construction project to other units, the turnover shall be the balance of the total price and out-of-price expenses obtained by it after deducting the subcontracts paid to other units. Subcontracting to other units can be deducted from the turnover, and subcontracting to individuals cannot be deducted.