Reverse charge mechanism
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 December 2012
I have a query regarding service tax reverse charge mechanism, We are a infra project company taken composite scheme of works contract, We have given contract of construction to subcontractor, but he doesn't have service tax registration or vat registration, whether we require to pay service tax on services availed from subcontractor or not ? please suggest.
06 December 2012
The liability of the service provider and service recipient is independent of each other.
The service recipient is liable to pay service tax under reverse charge even if the service provider is not liable to pay such tax.
Accordingly, in the above case, you are liable to pay service tax even though the service provider is not registered.
The service recipient is liable to pay service tax under reverse charge even if the service provider is not liable to pay such tax.
Accordingly, in the above case, you are liable to pay service tax even though the service provider is not registered.
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 December 2012
Then what percent ?
06 December 2012
In case of works contract 50% of the Service tax is payable by the service recipient.
So you will pay service tax @ 6.18%.
So you will pay service tax @ 6.18%.
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