Service tax on works contract service
Querist : Anonymous
We had done a contract of fire fighting instalation for our building for more than 1 Crore in 2011. and made running payments to contractor around 90 lacs upto 31/3/13. He issued invoice of Rs.56 Lac in March 12. Now he want to do balance invoice. My questions are:
1. Wheterh reverse charge will be applicable on old contracts i,e contracts prior to July 2012.
2.Whether we need to pay service tax on all balance payments under reverse charge.
3.Can the contractor issue separate invoices for material and services..
4. If yes in point 3 what about our service tax liability under reverse charge.
Thanks a lot in advance to all experts
The applicability of Reverse charge depend upon the status of service provider & receipient.
1.Depend on status of the assessee
2. Depend on status of the assessee
3. Yes
4.Depend on status of the assessee
Querist : Anonymous
Service recipient is company and provider is a partnership firm... Further the agreement was lumpsum with material agreement.
2.Yes
3. Splitting of invoice is not possible in the instant case,as you may be paying WCT on invoice amount.However, if the service provider can split the material & service component, than service tax is payable on service component only.But no abatement is available.
4.Service recepient liability is 50%.This is a works contract.This is covered under reverse charge category. As such there is an abatement of 60% on works value.You have to deposit service tax @12.36% on 40% value x 50%.
Querist : Anonymous
The service tax liability is on the Service provider.
Querist : Anonymous
Querist : Anonymous
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