Tax reduced 6% (Service Tax)

This query is : Resolved

( Author )
04 February 2013

The service tax from 12.36% has been reduced to 6.18%, where as the balance 6.18% has to be paid by the Purchaser. Kinly explain

Amol S. Joglekar.

( Expert )
04 February 2013

This is in the case of reverse charge mechanism. http://www.servicetax.gov.in/servtax_notfns_idx.htm

CA Prashant Gupta

( Expert )
04 February 2013

this is only in case of reverse charge.
but purchaser??
I take it means receiver of services.
Yes, half will be paid by service receiver. but it is different in different cases.
it is not like service taxi is reduced. Service tax is same but paying liablity comes to receiver also

Amol S. Joglekar.

( Expert )
05 February 2013

in respect of services provided or agreed to be provided in service portion in execution of works contract
service provider 50 % and service receiver 50%