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Service tax liability

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Querist : Anonymous

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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?
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VIVEK BARANWAL online

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VIVEK BARANWAL online (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
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