One party billed to us Rs. 200000.00 against the labour charges of painting work. In that invoice service tax registration no is not mentioned i.e service provider is unregistered. What will be tax liability to us i.e service receiver.
1. It is under RCM and 50-50 ratio. 2. Whether we need to pay service provider part to him (Rs. 200000.00*14%/50%)Rs.14000.00. Total payment to service receiver Rs. 214000.00 and Rs. 14000.00 to pay to Govt.
Or. Only Rs. 200000.00 to pay to the service provider and only Rs. 14000.00 (Receiver`s share) to pay to Govt.
or. Only Rs. 200000.00 to pay to service provider and Rs. 28000.00 (Total share) paid to Govt.
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