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This query is : Resolved

PAWAN (Querist)

20 March 2015 we have hired labour contractor to complete constructions work now department is asking to deposit service tax under reverse charge mechanism as manpower supply. department has issued show cause for that. we are a builder and depositing service tax regularly. our labour contractor is small contractor having turnover of less tha 10 macs hence not charging service tax

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 March 2015 Under reverse charge mechanism you have to pay service tax on 75%.

S SRINIVASAN

S SRINIVASAN (Expert)

20 March 2015 Dear Pawan
Pls clarify what is your constitution. If yours is a company, irrespective of taxable turnover of your service receiver you need to pay tax on Reverse charge at 75% of value of the taxable service and you can take cenvat credit of this sum paid against your builder service tax
casrinivasantry@gmail.com

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