Reverse charge under service tax
This query is : Resolved
Rahul Panwar
(Querist)
28 July 2014
if A company/individual enter in a contract for Repairing of chemical Plant which requires technical and professional knowledge and contractor also requires to supply the all material which are to be consumed in repairing of this Chemical Plant. As, in this contract, contractor has to supply both Labours(professional service) and Material so it is works contract thus Reverse charge should be applicable ( 50% paid by the SR and 50% paid by the SP). TDS should be Deducted U/s 194J.
EX
contract amount 200000
70% amount is Service (professional)
30% amount is material
TDS should be calculated as follows
=200000+200000*70%*12.36%*50%
=208652
=208652*10%
=20865
EX
contract amount 200000
70% amount is Service (professional)
30% amount is material
TDS should be calculated as follows
=200000+200000*70%*12.36%*50%
=208652
=208652*10%
=20865
Rahul Panwar
(Querist)
28 July 2014
Is My calculation is right
Rahul Panwar
(Querist)
28 July 2014
pls give your suggestion as soon as possible
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