Reverse tax agst. wct contract

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Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2013 Dear Sir our Pvt. Ltd.company made a contract with HP same also pvt. ltd. company for AMC of computer server along with consumables. HP given us tax invoice putting VAT 10% and Service Tax 8.652%. I want to know that reverse charges are applicable on the same. if yes then send me notification regarding the same.

thanks in advance.

RENGARAJ R.K

RENGARAJ R.K (Expert)

14 August 2013 After 01.07.2012, AMC also has been brought under WCT and hence as Company, the 50% liability is applicable to you.

Reverse charge notn: 30/2012-ST sl.no.9 and also see the service provider/service receiver's applicability based on the constitution.

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2013 Sir I have another question reverse charges will be applicable in the case of Indvidual or HUF is service provider and service receiver is company in this case reverse charges are applicable 50 % on co. & 50% indvidual or huf. But in our case both are private limited company. Kindly advise.

RENGARAJ R.K

RENGARAJ R.K (Expert)

16 August 2013 When the service provider himself is limited company, then service tax will have to be paid on full value, 50% is not applicable and service provider is not liable.

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