Service tax matter

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2016 Dear All,
I am contractor my contract partain to repair of electricals goods taken from say xyz ltd (reputed company) however i am paying ST on receipt basis as my trunover is below 50 Lakh,
the problem is... assume i have issed the bill of Rs. 115000/- to xyz limited with 1 Lakh service charge and 15000 ST. the xyz
ltd will not made full payment to me. Say
Xyz ltd has trf Rs. 98789/- against the bill
of 115000/- whenever i ask for clarification about service charge, ST & about TDS they never provide full payment not also clarification for the same hence i am so warried in this situation how to calculate service charge and ST,

Please help

Thanks,
Varun

Bharath

Bharath (Expert)
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22 September 2016 Hi,

Looking at your nature of work, you will be covered inder Works contract reverse charge mechanism. As you are an individual and you are providing service to a limited company,you cannot charge full service tax on your bill. The service tax has to be split between you and XYZ company 50% ratio. This means if the service tax amount is 100, then you should charge only 50Rs in your bill and your client will be responsible for paying the balance 50.
So in your case, XYZ would have reduced the service tax amount which he has to pay and given you the balance amount.He would have also deducted the TDS amount on the bill value.
For better clarity please ask him to give the breakup of the same.

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2016 Sir,
Yes RCM applicable but XYZ ltd does not provide me any clarification at all. Pls let me know is there any clause/rule in ST i can complaint against XYZ for not to provide details about service charges and ST,

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