Service tax rate w.e.f. july 2012
This query is : Resolved
04 September 2012
What is the percentage of service charge on which service tax payable w.e.f. 1st July 2012? Suppose a bill of RS. 12000.00 raised under Maintenance or Repair Service for deputing an engineer to attend to fault of Machine in a plant. Is ST payable on 70% of 12000.00 as per notification 24/2012 or on 100%. If 70% will service receiver pay the rest? Kindly help with notification no.
05 September 2012
Dear Kaushik,
If the services rendered by an Engineer involves replacement of any part or sale of goods then the activity will be treated as Works Contract. On the otherhand, if the services rendered involves no transfer of property (or sale) then it is purely service and would not fall under Works Contract.
Therefore, if the activity is a works contract then tax is payable on 70% of the invoice value i.e. (12.36% on 8400).
No, the service receiver will not be liable to pay tax on balance 30% of invoice value.
However, if the service provider is an individual or a partnership firm then it is advisable to refer Notification No. 30/2012 for ST payable on reverse charge basis.
If the services rendered by an Engineer involves replacement of any part or sale of goods then the activity will be treated as Works Contract. On the otherhand, if the services rendered involves no transfer of property (or sale) then it is purely service and would not fall under Works Contract.
Therefore, if the activity is a works contract then tax is payable on 70% of the invoice value i.e. (12.36% on 8400).
No, the service receiver will not be liable to pay tax on balance 30% of invoice value.
However, if the service provider is an individual or a partnership firm then it is advisable to refer Notification No. 30/2012 for ST payable on reverse charge basis.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Multiple payment of self assessment tax for A Y 2025-2026
- CAPITAL GAIN REDEVELOPED FLAT
- REGARDING ITR FILING QUESTION
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- Correction in TDS return New Traces Portal
- TDS refund Indemnity Bond
- Short Term Gain Reporting ITR
- U/S 194 T
- 44AD, 44ADA business details
- Computation of Dividend
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
