Double payment on same work

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This query is : Resolved

Ashish Surana (Querist)

18 October 2011 Dear Sir,

Let A is client, B is contractor and C is sub contractor of B.

Consider C has done his work,which is given by B and C got his service tax paid amount from B after showed his tax invoice to B

And the same has been consider for B.

Is GOVT getting more than one time service tax for the same work.

Explain me with Example Pls.
Its Urgent

CA Rushikesh Kolhe

CA Rushikesh Kolhe (Expert)

18 October 2011 lets consider an example
A is client and total work is of Rs.100/- hence service tax on this will be Rs.10/- ( not considering the Cess) hence total payment to be made by A to B is Rs.110/-
and total service tax to be paid/deposited by B to Govt. for providing his services to A is Rs.10/-
Now lets go further
Now amongst the above work B is taking services from C for providing his service to A of lets say Rs.60/- hence total payment to be made by B to C will be Rs66/- (Rs.60+Rs6 for service tax)
n C will deposit Rs 6 to Govt.
but as service provided by C to B is input servce to B, B can take credit of Rs.6/- while paying his duty liability of Rs.10/- hence B will have to pay Rs.4/- only.
There is not at all double taxation for same service provided and payment made.

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