Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2015 Dear all.
we are contractor. a company whose contract
we have completed. now they are refused to us
to charges service tax at contract amount.
plz. tell me what exactly should i do now.

and also confirm, suppose at 31/3/2015 i am having a service tax input. there is no ST liability at 31/3. can i get my input refund or will be adjust in next year.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 February 2015 You have to see the terms of contract. Under reverse charge the company is liable to pay 50% service tax.
Tell me your status. Your liability on service tax, if you cross 10 lacs limit can't be avoided merely because your company is not paying it.
The input tax credit can be claimed within 6 months.

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2015 Respected sir
i am engaged in proprietor ship firm.and also having a turnover more than 10 lac.
but tell me the terms for coming under reverse charges. i am under reverse charges
in that cases who will service tax. and what will be the service tax %

(contract was with including material and labour)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 February 2015 For you reverse charge is applicable 40% (abatement if it is original contract not repair and maintenance work)value on which service tax payable by you is 50%. 50% service tax on 40% value is payable by the company. Service tax rate is 12.36%.

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2015 Dear SEETHARAMAN SIR.
Am just mentioning the the details.
contract amount with include material was
200000
should i charges service tax 12.36% on 40% of 200000/- which is 80000*12.36= 9888/-
the bill would be raised to that co. rs 209888/- am i corruct.
and will the company also pay any more service tax. and on which amount that company
will deduct tds.

plz. clarify it in details.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 February 2015 50% of service tax of 9888/- has to be paid under reverse charge by the company. So raise bill for 2,04,944.