Work contract

Save Share

This query is : Resolved

Jay V (Querist)

09 September 2013 Here case that.
Service Provider provides his works contract service to Body Corporate.
He raise bill with 60% abatement also and 50% reverse charge mechanism.

So can service provider take both abatement and RCM of 50%?

RENGARAJ R.K

RENGARAJ R.K (Expert)

09 September 2013 YOU HAVE NOT INFORMED WHETHER THE SERVICE PROVIDER IS INDIVIDUAL OR FIRM?

ASSUMING THAT THE SP IS INDVL, IF HE IS DOING ORIGINAL WORK (NEW CONSTRUCTION WORK), HE IS ELIGIBLE FOR ABATEMENT AND 50% RCM IF IT IS DONE TO COMPANY.

WHAT IS HIS WORKING FOR HIS VAT LIABILITY, THAT QUESTION IS MISSING. ALSO READ THE VALUATION RULE 2A.

Jay V

Jay V (Querist)

10 September 2013 SP is firm.
Receiver is Body Corporate.
SP Provides service of labour with material of furniture (New Contract).

RENGARAJ R.K

RENGARAJ R.K (Expert)

10 September 2013 Please note that original work means only construction, otherwise 60% abatement is not allowed. It will be treated other civil works contract where only 40% abatement is eligible.
Please see the definition for 60% abatement i.e original work:

(a) “original works” means-

(i) all new constructions;

(ii) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable;

(iii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise;

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now