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Laibility of service tax under works contract

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This query is : Resolved

MOHIT SHARMA (Querist)

29 June 2015 i am an individual providing works contract service of Rs.2050000 to a company in the year 2014-2015.

kindly tell me wether i would be liable to pay service tax...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

29 June 2015 1. 50% of the service tax is payable by you and the remaining 50% is payable by the 'company'

2. Service tax rate is 5.60% (for original works) and 9.80% (for other works) on the works contract value. Please see notification 11/2014 ST.

3. If it is the first year Rs. 10 lac can be claimed as exempted turnover.

CA. Ankit Chandrakar

CA. Ankit Chandrakar (Expert)

29 June 2015 The applicable rate for service tax on Works Contract are:

5.6% on original works and,
9.8% on other works as rightly said by Mr. Warrier.

You are liable to pay 50% of the total applicable service tax PROVIDED the service receiver is a "company".
Otherwise, the whole of the tax liability to be discharged by you only.

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