We have issued a Work order in Haryana for Ventilation work. Contractor has submitted all taxes in his rates (inclusive of Service Tax, Labour Cess, WCT and any other local taxes). Service tax we are paying on 33% of Order value, but in his bill contractor is not showing service tax separately on his Invoice. We have asked to his. We need an invoice with the service tax amount shown separately on Invoice. Contractor is denying and arguing on that and saying his amount is inclusive of service tax and no need to show separately on Invoice.
If we accept the bills without showing service tax amount separately on invoice what would be implementation on us and what is the benefit to the contractor not showing service tax separately on his invoice, may be the contractor will not deposit service tax, and it would be a part of his profit.
CAclubindia
