Service tax rate under composite scheme.
This query is : Open
Guest
Guest
(Querist)
16 August 2012
Dear Experts,
We r register under composite scheme of Service Tax under Works Contract Service(4.944%). Now after the rules of reverse charge mechanism(50% payable by Service provider and 50% payable by service receiver). after this rules we can collect only 50% of Service Tax from our client. My doubt is tht should we hv to pay remaining 50% from our pocket or what?? Please clarify this point...
thanks in Adv..
We r register under composite scheme of Service Tax under Works Contract Service(4.944%). Now after the rules of reverse charge mechanism(50% payable by Service provider and 50% payable by service receiver). after this rules we can collect only 50% of Service Tax from our client. My doubt is tht should we hv to pay remaining 50% from our pocket or what?? Please clarify this point...
thanks in Adv..
16 August 2012
Though composition scheme is abolished, the service tax works out to 4.944% for 40% of the contract value. 40% of 12.36 = 4.944.
Your liability is limited to 50% of the value and the rest of the turnover (i.e 50%) will be taken care by the service receiver. There is no need to pay from your side for the other 50% under reverse charge.
Hope it is clarified.
Your liability is limited to 50% of the value and the rest of the turnover (i.e 50%) will be taken care by the service receiver. There is no need to pay from your side for the other 50% under reverse charge.
Hope it is clarified.
Guest
Guest
(Querist)
16 August 2012
Sir please give your mail id. I have some more doubt on this topic..
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