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%.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- TDS on property - Form 141 query
- F & O PROFIT REPORTING FOR AY 2026-27
- ITR-3 File/Error Found
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Average Cost Of High Quality Diamonds
- Taxability of credit in canara bank ET & T section (NRO)
- Difff in ais receipts and gst turnover
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
