Query on works contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2014 Sir/Madam,
One of our client entered into works contract where they receive both services and material from the party but the party did not claim any service tax on the bill ,they don"t even have service tax regn number and claimed vat ...and the party is proprietary concern
Now what should our client do about the service tax whether he need to pay 50% service tax (amt excluding vat) or to pay total 100%service tax ....................
The work done by the party is insulation work
sir,plsssssssssss reply me soon

Jayant Bothra

Jayant Bothra (Expert)
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11 October 2014 Dear Sir,

If you read section 68 then you will see that liability of provider and receiver is separately defined. The sub section (1) of section 68 talk about liability of service provider and sub section (2) of section 68 talks about liability of service receiver. Therefore, the liability of two are exclusive of each other. I cannot be assumed that if the service provider did not disposed off his liability then service receiver is to be held liable to pay.

hence, you are liable to pay your portion of service tax only i.e. 50%.

Thanks & Regards

CA JAYANT BOTHRA
ca.jayantbothra@gmail.com

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