Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2014 Sir,
My Uncle is an Engineer and consultant.
He recently got a Govt. contract (for consultancy). He now wants to sub contract the same contract. What will be the service tax procedures regarding Govt. billing and sub-contractors billing? How will he get service tax credit/refund? please help in this regard with related documents.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
Follow

19 March 2014 the Service tax is required to be charged as there is no exemption.

First ST registration to be obtained if the value taxable service exceeds Rs 10 lakhs, and even the subcontractor has to take the registration if his taxable service exceeds Rs 10 lakhs.

The ST charged by the Subcontractor will be input for the main contractor.

calculation formula as follows

Amount billed to Govt * 12.36% ****
(-) St paid to Subcontractor ****
Balance tax payable ***

The tax is to be laid in GAR 7 challan

and Half yearly ST-3 return to be filed

for more information and clarification
contact ,e @ rkb@icai.org

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now