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Work contract

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This query is : Resolved

CA, CMA (Querist)
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20 September 2012 Hello

We are entering into a work contract of 5.5 lacs. Contractor is not registered under service tax. As per new rules, we are liable to pay 50% of service tax. I want to know that if service provider is not liable to pay s tax, even then we have to pay 50% of stax.

Thanks & Regards
aseem

CA. Vikash Chandra Jaiswal

CA. Vikash Chandra Jaiswal (Expert)
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20 September 2012 Yes Aseem, Even if the Service provider is not registered or is under limit of 10 lakhs. Service receiver has to pay 50% under reverse charge.

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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20 September 2012 Agreed with the Reply of Mr. Jaiswal even if the Service Provider is an SSP or is not required to pay, the Service Receiver has to pay 50% under Reverse Charge Mechanism

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