Reverse charge mechanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2013 I WORK IN REAL ESTATE COMPANY WHERE KONE ELEVATOR (P) LTD. WORKS AS A WORKS CONTRACT SERVICE. HE CHARGED SERVICE TAX. WE HAVE A SERVICE TAX REGISTRATION ON CONSTRUCTION OF RESIDENTIAL COMPLEX AND COMMERCIAL BUILDINGS & REPAIR AND MAINTENANCE.

MY QUESTION IS:1> IN THE REVERSE CHARGE RULES, THERE IS A LIABILITY OF SERVICE TAX AS A SERVICE RECEIVER, SO WE ALSO NEED TO REGISTER IN WORKS CONTRACT SERVICE TAX CODE? OR JUST PAYMENT THE FULL AMOUNT?
QUES. 2> DO WE NEED TO DEDUCT SERVICE TAX AMOUNT FROM HIS BILL AMOUNT BEFORE PAYMENT?
QUES. 3> DO WE PAID THE SERVICE TAX DIRECTLY TO THE GOVT.? OR JUST PAID THE FULL BILL AMOUNT INCLUDING SERVICE TAX TO THE PARTY?

CA Suresh Jain

CA Suresh Jain (Expert)
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15 August 2013 You need not register again. You need to inform the department when you start a new service.You need to pay your portion of service tax under RCM.

No, you need not deduct service tax from kone

you need to pay your portion of service tax uner RCM to Govt.

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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Querist : Anonymous

Querist : Anonymous (Querist)

15 August 2013 THANK YOU SIR FOR YOUR KIND ATTENTION.
BUT SIR IF I DON'T INFORM TO THE GOVT. IS THERE ANY SCRUTINY ARISE FROM GOVT.?
ONE MORE THING SIR IF I DON'T DEDUCT SERVICE TAX PORTION OF MINE FROM HIS BILL AMOUNT THEN IT'LL BE THE EXTRA LIABILITY ARISE FOR US. SOS WHAT SHOULD WE DO SIR?

CA Suresh Jain

CA Suresh Jain (Expert)
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15 August 2013 There is no question of deduction of service tax from vendor. Your service tax is to be paid by you. You should renegotiate price with your vendor to reduce cost of service to you.

You must inform the change to the department.

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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