We are entering into a work contract of 5.5 lacs. Contractor is not registered under service tax. As per new rules, we are liable to pay 50% of service tax. I want to know that if service provider is not liable to pay s tax, even then we have to pay 50% of stax.
20 September 2012
Yes Aseem, Even if the Service provider is not registered or is under limit of 10 lakhs. Service receiver has to pay 50% under reverse charge.
20 September 2012
Agreed with the Reply of Mr. Jaiswal even if the Service Provider is an SSP or is not required to pay, the Service Receiver has to pay 50% under Reverse Charge Mechanism
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