Reverse charge calculation
This query is : Resolved
01 November 2013
sir
pl give guidance how to calculate service tax for work contract
CA Vijeta Verma
(Expert)
01 November 2013
Vikrant please go through this link
https://www.caclubindia.com/experts/work-contract-tax-1381879.asp#.UnPb6lLNnQ4
https://www.caclubindia.com/experts/work-contract-tax-1381879.asp#.UnPb6lLNnQ4
Ganeshbabu K
(Expert)
01 November 2013
Reverse charge in works contract service
1)50% tax by service receiver if service provider of works contract service is individual, HUF, proprietary or partnership firm or AOP
2)AND service receiver is business entity incorporated as body corporate.
3)50% service tax is payable by service provider and 50% by service receiver. The service receiver liable for 50% even if service provider does not charge service tax.
4)The small service provider exemption of ` 10 lakhs not available when tax is payable under reverse charge.
5)Cenvat credit cannot be used to pay tax by service receiver. Service tax as to be paid by cash only i.e. GAR-7 challan.
6) Tax should be paid under service tax registration number of service receiver and included in his return as he is liable to pay service tax
**Construction, Job work with material, AMC covered under works contract.
1)50% tax by service receiver if service provider of works contract service is individual, HUF, proprietary or partnership firm or AOP
2)AND service receiver is business entity incorporated as body corporate.
3)50% service tax is payable by service provider and 50% by service receiver. The service receiver liable for 50% even if service provider does not charge service tax.
4)The small service provider exemption of ` 10 lakhs not available when tax is payable under reverse charge.
5)Cenvat credit cannot be used to pay tax by service receiver. Service tax as to be paid by cash only i.e. GAR-7 challan.
6) Tax should be paid under service tax registration number of service receiver and included in his return as he is liable to pay service tax
**Construction, Job work with material, AMC covered under works contract.
Ganeshbabu K
(Expert)
01 November 2013
You may refer my above reply for reversecharge provisions for workcontract service
.
.
but if you want to learn what is work contract service with little clarity,,you are advised to refer to below link
.
.
https://www.dateyvs.com/faqs-on-works-contract-service/
.
.
but if you want to learn what is work contract service with little clarity,,you are advised to refer to below link
.
.
https://www.dateyvs.com/faqs-on-works-contract-service/
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