Reversal of service tax

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Ganesh Kumar Prajapat (Querist)

15 January 2014 A company has received AC repairing service from an individual worth of Rs.8000/-
Material-7000/-
Labour charges-1000/-

Service tax not charged in bill by vendor & company has no contract with vendor.

In above condition Reversal of Service tax should be made or not??

Annu Agarwal

Annu Agarwal (Expert)

15 January 2014 Service tax shall be paid on 1000/- under partial reverse charge mechanism .
It is a work contract,as it is for repair of moveable property(a.c) and there is a transfer in property of goods used in repair.Service tax shall be paid on service tax portion i.e on Rs 1000/- @ 12.36 i.e 123.6 of which 50% shall be paid by comoany and 50% shall be paid by individual.

Ganesh Kumar Prajapat

Ganesh Kumar Prajapat (Querist)

16 January 2014 your service tax rate 12.36% is wrong effective tax rate 8.652% and company paid by 50% service tax i.e.(4.326%) please suggested as per notification No.30/2012-st date 20.06.2012

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