Reverse charges- work contract.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2013 Dear CCI Experts.

I am working in a Company engaged in providing Infrastructure Support Service and Renting of immovable property.

Current year Company Receiving Work Contract services (For Construction of Office Complex )from Many Contractors.(Individual & Firm). till Date these contractors are Charging Service Tax (100%) After Abatement i.e 4.944%. and company also Paid all Bills of Contractors. after notification 30/2012.Reverse Charge Mechanism 50% Service tax payment Liability of Service Receiver. and our company do not Follow Notification 30/2012 . what will effect and how can we rectify this. Please Suggest.

Kaushik Vinod

Kaushik Vinod (Expert)
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08 February 2013 The Notification No.30/2012-ST dated 20-06-2012 came into force from 01-07-2012.

The Liability under the Act can not be transferred since the Contractors has paid the tax that does not mean that you have not to pay the tax on 50% value.
Pay tax by GAR-7 with interest @ 18% PA and avail credit of the same under CCR,2004.

Thanks

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