Service tax on works contract
This query is : Resolved
07 July 2013
A Proprietary concern provides materials and service (Works Contract) to Pvt.Ltd. companies and levies service tax at 12.36%.
The invoice amount is received and Service Tax is paid to the Dept.
My question is should service tax have been levied at 6.18%?
If Yes, since full amount (12.36%) received from the customer is paid to the dept, what happens next?
The invoice amount is received and Service Tax is paid to the Dept.
My question is should service tax have been levied at 6.18%?
If Yes, since full amount (12.36%) received from the customer is paid to the dept, what happens next?
Ganeshbabu K
(Expert)
07 July 2013
Billing by service provider in case of work contract service under reverse charge :
1)Service provider should charge only his part of service tax.
2)Service receiver to pay service tax of his part by GAR-7 challan
3)Service receiver liable for only his part and not entire amount, even if service provider does not charge his portion of service tax
There many not be any problem from your end as you have duly deposited the collected amount..
If any problem it will be with your service receiver..
However now onward claim only Your part which is 50%..
Thanks & regards
Ganesh babu k
1)Service provider should charge only his part of service tax.
2)Service receiver to pay service tax of his part by GAR-7 challan
3)Service receiver liable for only his part and not entire amount, even if service provider does not charge his portion of service tax
There many not be any problem from your end as you have duly deposited the collected amount..
If any problem it will be with your service receiver..
However now onward claim only Your part which is 50%..
Thanks & regards
Ganesh babu k
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