K.RAJA (Tax Consultant) (217 Points)
27 February 2015Dear Sir,
we are doing construction business under works contract for a LTD concern. so which category we are coming under this operation whether service provider or service receiver also please clarify we are applicable for abatement as well as RCM.
J. K. Ratan
(Compliance Advisor)
(794 Points)
Replied 27 February 2015
Dear Raja
As you are providing services to Ltd. company than you are Service Providers. There is 60% abetment in for construction services under work contract.
You will have to pay 50% service tax on Taxable bill amount. (i.e 40% of bill amount)
Example:- Bills Raised during the year Rs. 10000.00
Abatment 60% 6000.00
Taxable Amount 4000.00
Service Tax 247.20
(4000*50%*12.36%)
Balance 50% service tax shall be paid by service receiver (i.e. Ltd).
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