Service tax liability
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 October 2012
A trust hires plumbing contractor & electrical contractor for a building which is being constructed. The plumbing contractor is a company and the electrical contractor is an individual. Both are charging composite service tax @ 4.944%. Now according to the new rules of service tax, who is liable to pay service tax? Is some liability shifted towards the trust also?
VIVEK BARANWAL
(Expert)
06 October 2012
Rate charged by both is incorrect
Rate of(4.944%) 4.8% + 3% Edu cess is uoto 30.06.2012
After 01.07.2012 rate is 12.36 % but Taxable value on which service tax charged may vary as follows
1. original works 40%
2. Repair 70%
3. other 60%
As stated in query Plumbing contract is company so 100% service tax liability on him. rate may be (60*12.36%)=7.416%
Electrical contractor is individual so 50% liability on your account
rate may be (60*12.36%)=7.416% 50% of this (3.708%paid by you directly to department under reverse charge
3.708% he charge to you
Rate of(4.944%) 4.8% + 3% Edu cess is uoto 30.06.2012
After 01.07.2012 rate is 12.36 % but Taxable value on which service tax charged may vary as follows
1. original works 40%
2. Repair 70%
3. other 60%
As stated in query Plumbing contract is company so 100% service tax liability on him. rate may be (60*12.36%)=7.416%
Electrical contractor is individual so 50% liability on your account
rate may be (60*12.36%)=7.416% 50% of this (3.708%paid by you directly to department under reverse charge
3.708% he charge to you
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