Dear Experts,
We are in business of industrial construction; we have received service tax (50% of actual service tax as per notification no. 30/2012 dated 20.06.12, 50% service tax to be paid by service recipient) from our client.
We have given same work (After margin of 10% only) to our subcontractor and have paid 100% service tax on his bill amount. Looking to above situation we have paid more service to our sub contractor.
Example
If our Bill amount is Rs. 100 (With Material)
As per work contract we have charged ST on 40% (ie. On Rs. 40/-)
ST ( @ 15%) Amount is Rs. 6, so we have received only Rs. 3 from client.
At the same time we have paid as under.
Sub contractor Bill amount is Rs. 90 (With Material)
As per work contract sub contractor charged ST on 40% (ie. On Rs. 36/-)
ST ( @ 15%) Amount is Rs. 5.4, so we have paid Rs. 5.4
We have received ST Rs. 3 and paid to sub contractor 5.4.
So Rs. 2.4 paid extra which is our balance at ST department.
In above situation what to do from our end?
If we closed the above firm today and surrender the ST registration to department, can we claim for refund from department? What is the procedure for refund?
Please guide.
CAclubindia
