Nature of our business is manufacturing company, at our factory XYZ Fabrication our Vendor done the maintenance work of Rolling Shutter, Compound gate, wall railing, material shed etc...... He raised the bill as a work contract amounting to Rs. 16 Lakhs and added VAT @ 8% total bill of Rs. 17.28 Lakhs.
PAN NO. and VAT TIN Nos. has mentioned on his bill, but Service Tax nos. not mentioned on his bill (service tax registration not taken)
Please advise, 1. We have to pay Service Tax on this bill? (Reverse service mech.)on which amount? Service Tax % in our account? full 100% or any other.... 2. He is liable for service tax?? 3. Can we accept his bill without service tax nos and pay? 4. any other taxes on his bill?
17 December 2016
Based on my views and your information:
1. If service provider is individual, huf or partnership then your company required to pay ST on Rs. 5,60,000 @ 15%.
2. Yes, he should be liable for registration and partial ST pay.
3. Before accepting you should consult with them to know any hidden reasons.
4. Compliance of wct deduction may be required.
pls correct me if required anywhere.
for any assistance contact me : rnjeswanibc785@gmail.com, 9923179548.
CAclubindia
