Clarification on works contract after 1-7-2012

This query is : Resolved

Hari Prasad.K (Querist)
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05 March 2013 One of our client constructing a railway bridge for IOCL from last 3 years. Now IOCL asking our client to submit service tax registration due to amendment after 1-7-2012. Before that they never asked for ST registration no. Now if we go for registration can we get exemption upto 30.06.2012 if not what are consequences. And our client did not any charge service tax until. How to overcome from this issue

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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06 March 2013 I understand that your client's status is either Individual or Partnership. If yes, as per RCM, the 50% liability is on the service receiver (calculated after abatement as applicable).

Any service provider is exempted till he does not achieve the turnover on 10 Lac in any year. Your client need to be registered accordingly.

If your client is not got registration even attained the turnover of 10 Lac. It is appropriate to get registered immediately.

No need to afraid, since we ourselves (Suo-moto) declaring and depositing the tax. You required to deposit interest @18% per annum on the tax not deposited.

However, you are advised to seek consultancy of Excise/Service Tax expert.

Regards
K.L.Paliwal