Service tax-reg. certificate amend
This query is : Resolved
18 March 2013
Dear Experts,
I am an accountant in a Pvt. Ltd. company. i have following que. please help me...i am asking que. to each experts but everyone cant gate satisfied answers.
Our labour contractor billed to us 100% service tax & fully paid by him. now, auditor telling that pay our part of 75% amount of that. and amend service tax certificate. i was gone to service tax department, they told me for online amendment & submit hard copy for the same. i am confuse now, which service select & how will be payment code ?
Please guide me !!! its a very urgent.
I am an accountant in a Pvt. Ltd. company. i have following que. please help me...i am asking que. to each experts but everyone cant gate satisfied answers.
Our labour contractor billed to us 100% service tax & fully paid by him. now, auditor telling that pay our part of 75% amount of that. and amend service tax certificate. i was gone to service tax department, they told me for online amendment & submit hard copy for the same. i am confuse now, which service select & how will be payment code ?
Please guide me !!! its a very urgent.
19 March 2013
Please reply !
25 July 2025
Got it, you're dealing with a tricky situation involving **service tax paid by a labour contractor** and now your auditor is saying your company must pay 75% of that service tax and amend the registration certificate accordingly.
Let me break this down for you step-by-step, and clarify what needs to be done for **service tax payment and registration amendment**:
---
### 🔹 Background: Service Tax on Labour Contractors & Your Liability
* If your **labour contractor paid service tax on the entire invoice**, but you are the **principal employer**, under **reverse charge mechanism (RCM)** you may be liable to pay service tax on **75% of the value of the contract services**.
* The contractor pays on 100%, but you pay on 75% (your part), essentially splitting the tax liability.
---
### 🔹 What Is The "Amend Service Tax Certificate" About?
* Your company must **amend the Service Tax Registration** to include the **correct services provided under reverse charge**, if not done earlier.
* This means **adding “Contractor Services” or similar taxable service** to your registration profile.
---
### 🔹 How to Amend Service Tax Registration Online?
**Step 1:** Login to the Service Tax portal:
[https://cbic-gst.gov.in](https://cbic-gst.gov.in) or [https://www.aces.gov.in](https://www.aces.gov.in) (depending on the portal active)
**Step 2:** File an **application for amendment** in Form ST-5 (online).
**Step 3:** You will need to select the **appropriate Service Tax code (service type)**.
---
### 🔹 Which Service to Select?
Since it’s **labour contract services**, select:
* **Service Code 9997** — **“Labour Contract Services”**
* This is the code used to describe taxable services provided by labour contractors.
---
### 🔹 What Is the Payment Code?
For payment, the usual **Service Tax Payment Code (also known as SAC code)** related to labour contract services is:
* **Code 9997** — for labour contract services
When making payment online (challan payment), enter this code under the “Service Tax Payment Code” field.
---
### 🔹 Summary of Actions for You
1. **Amend your Service Tax Registration (Form ST-5 online):**
* Add "Labour Contract Services" (Code 9997) to your registration.
* Submit the amendment and get the acknowledgment.
2. **Pay Service Tax on 75% of labour contract value under reverse charge:**
* Use payment code 9997 in the challan.
* Pay the calculated amount.
3. **Maintain records of payment and amended registration certificate.**
---
### 🔹 Additional Tips
* Keep copies of your contractor’s invoices and payment receipts.
* Cross-check with your auditor the exact amount of service tax payable by your company.
* Always quote your Service Tax Registration Number (STN) while making payments.
---
### If you want, I can also help draft:
* The **amendment application draft** for the portal,
* Step-by-step guidance for the **payment challan** online.
Would that help?
Let me break this down for you step-by-step, and clarify what needs to be done for **service tax payment and registration amendment**:
---
### 🔹 Background: Service Tax on Labour Contractors & Your Liability
* If your **labour contractor paid service tax on the entire invoice**, but you are the **principal employer**, under **reverse charge mechanism (RCM)** you may be liable to pay service tax on **75% of the value of the contract services**.
* The contractor pays on 100%, but you pay on 75% (your part), essentially splitting the tax liability.
---
### 🔹 What Is The "Amend Service Tax Certificate" About?
* Your company must **amend the Service Tax Registration** to include the **correct services provided under reverse charge**, if not done earlier.
* This means **adding “Contractor Services” or similar taxable service** to your registration profile.
---
### 🔹 How to Amend Service Tax Registration Online?
**Step 1:** Login to the Service Tax portal:
[https://cbic-gst.gov.in](https://cbic-gst.gov.in) or [https://www.aces.gov.in](https://www.aces.gov.in) (depending on the portal active)
**Step 2:** File an **application for amendment** in Form ST-5 (online).
**Step 3:** You will need to select the **appropriate Service Tax code (service type)**.
---
### 🔹 Which Service to Select?
Since it’s **labour contract services**, select:
* **Service Code 9997** — **“Labour Contract Services”**
* This is the code used to describe taxable services provided by labour contractors.
---
### 🔹 What Is the Payment Code?
For payment, the usual **Service Tax Payment Code (also known as SAC code)** related to labour contract services is:
* **Code 9997** — for labour contract services
When making payment online (challan payment), enter this code under the “Service Tax Payment Code” field.
---
### 🔹 Summary of Actions for You
1. **Amend your Service Tax Registration (Form ST-5 online):**
* Add "Labour Contract Services" (Code 9997) to your registration.
* Submit the amendment and get the acknowledgment.
2. **Pay Service Tax on 75% of labour contract value under reverse charge:**
* Use payment code 9997 in the challan.
* Pay the calculated amount.
3. **Maintain records of payment and amended registration certificate.**
---
### 🔹 Additional Tips
* Keep copies of your contractor’s invoices and payment receipts.
* Cross-check with your auditor the exact amount of service tax payable by your company.
* Always quote your Service Tax Registration Number (STN) while making payments.
---
### If you want, I can also help draft:
* The **amendment application draft** for the portal,
* Step-by-step guidance for the **payment challan** online.
Would that help?
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