When tax liabilty due under reverse charge mechanism.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2015 Sir,

I am working with Infrastructure Company, So sir I want to Know that when my Tax Liabilty due under reverse Charge. I will booked my tax liabilty on basis of payment or Basis of invoce received.
And Sir please guide me that Payment method better or Accrual Basis which method is better for us. Since i have paid tax on the basis of Accrual.

Vineet Goyal

Vineet Goyal (Expert)
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07 April 2015 Tax liability is due when the amount is credited to the vendor.

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2015 Thank You. Vineet Sir.

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2015 Vineet Sir, Good Morning, Hope you well.

Sir, I am working in Construction. We have received Original Work Contract from Client. Then we Have hire Sub Contractors for processing Contruction Work. Sub Contractor Like POP Contractor, Brick Work Contractor, RCC Contractor and Floor Work Contractors. Contractors have received individual work 9We can thay are all fall Under Other Work Contract).

Our Few Contractors have received contract for Labour + Material (Thay are purchase material own) both. and Some Contractor Have received contractor for Manpower Supply and Material we are provided him for work processing.

I have query that how much service Tax rate deposit on both Services under Reverse Charge. and we are also deposit Service Tax on Free issue Material which we are provided to the Sub Contractors.

Two Cases are:-

1. Sub Contractors ( Labour Supply + Material). Please define Rate.

2. Sub Contractor only Supply (Labour) material we are provided. Please define Service Tax Rate.

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