Service tax liability for pvt ltd company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2013 PRIVATE LTD COMPANY RECEIVES SERVICE LIKE 1)ANNUAL MAINTANANCE CONTRACT FOR COMPUTER, GENERATOR ETC.
2) REPAIRS OF MACHINERY
IT RECEIVES THIS FROM BOTH PVT LTD AND INDIVIDUALS / FIRMS / NON CORPORATES.
WHETHER THESE ATTRACT SERVICE TAX.
WHAT IS THE LIABILITY IF ANY FOR THE PVT LTD COMPANY
1) IF SERVICE RECD FROM CORPORATE
OR
2) IF SERVICE RECD FROM NON CORPORATE

Sumit Grover

Sumit Grover (Expert)
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27 March 2013 Usually,both the services mentioned in the query fall under the category of "Works contract" as defined under secion 65B& yes it attracts service tax. In case, material & labour charges are bifurcated, then service tax is levied @ 12.36%.
If not(i.e. a consolidated bill without seggregating Material & labour), then service tax is levied @ 8.652% of the total amount charged by Vendor
1) if received from corporate, the entire liability is of service provider. & the service receiver can take CENVAT of the same (subject to provisions of CENVAT Crecit Rules, 2004)
2) if taken from individual, firm, HUF, then 50% of the total service tax liability is of service provider & 50% is of service receiver

Source: notification no. 30/2012

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