Ajay s (Accounts Officer) (243 Points)
11 February 2011Dear All
We are providing Repairs service to one of our clients. We are also engaging 2 sub contractors.Here whenever the money is receiveing we will pay 10.3% service tax and produce the chellan and collecting the amount.
Now our sub-contractors are asking service tax amount from us. My question is is they are liable to pay service tax ?
If yes how to solve this problem
Pankaj Arora
(Learner)
(3134 Points)
Replied 11 February 2011
Yes sub-contractor is also liable for collecting service tax if his gross receipt is more than 10L.
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 11 February 2011
Pay service tax to sub contractors and claim input credit
Ajay s
(Accounts Officer)
(243 Points)
Replied 12 February 2011
Pankaj Gross Receipt for 10l per year or for entire contract.
Pavan already we paid then how to adjust input credit
Pankaj Arora
(Learner)
(3134 Points)
Replied 12 February 2011
Sub-contractor must submit you bill including service tax so you can take input credit of those service tax for providing/provided output service
Ajay s
(Accounts Officer)
(243 Points)
Replied 12 February 2011
Dear Pankaj Once we paid the service tax amount and reimbursed the same again we are paying to sub contractor , that credit where we can utilize
But They have submitted bills excluding service tax and our order to sub contractor is telling all the amounts are including taxes.
Pankaj Arora
(Learner)
(3134 Points)
Replied 12 February 2011
If its excluding service tax than no need to take input credit.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 15 February 2011
Sub-contractor is liable to service tax . Tax paid by them is cenvat credit for you .
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