Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2015 Dear expert
if the contractee has issued the bill to contractor for original work but contractee has not charge ST in the bill because he is availing ST exemption limit.
Note that contractee is individual and contractor is pvt. ltd company,
plz let me know whether the contractor is liable to pay 50% ST amount under reverse charges..

thnk in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 March 2015 You are little bit confused about contractee and contractor.
If the pvt.ltd company gets works executed by individual it has to pay 50% ST under reverse charge.

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2015 Dear sir
contractee is individual who has taken contract from pvt ltd company for original work. but the problem is the contractee individual has not charged ST in the bill because he is availing ST exemption limit, in this case whether pvt. ltd. company who is contractor is liable to pay 50% ST on labour portion under reverse charges or not.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 March 2015 Yes pvt.ltd company has to pay 50% ST on labour portion under reverse charge.

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