Calculation of service tax

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CA AJAY KUMAR AGRAWAL (Querist)
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19 June 2014 My query is, for example a contractor has been providing service for Rs 15 Lacs per year for last 3 years & did not charge Service Tax separately in the Bills. Hence he never deposited any Service Tax. Now through Form 26AS Deptt came to know all this & demanding Service Tax with Interest. My query is whether he is required to deposite Service Tax Rs 556200 (interest extra) on (15Lacsx3x12.36%) or Rs 495016 (interest extra) on (15Lacsx3x12.36/112.36) by back calculation. Please suggest with relevant rules. Thanx

Rupesh Jain

Rupesh Jain (Expert)
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19 June 2014 from 1.7.2012 if you are company (PVT LTD./LTD.) and contractor is other than company. then you have to pay service tax on labour supply @ 75% of 12% (effective (9%+cess 3%= 9.27%) and 3.09 paid by the contractor.

if the contractor is pvt ltd/ Ltd then contractor liable to pay service tax @ 12.36%

and invoice before 1.7.2012 service tax 12.36% is payable by the contractor.

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Querist)
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19 June 2014 My query is different. It is related to deposit of service tax for earlier years & calculation theriof. wef 1-7-12 it is being done properly.

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