Works contract

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P G JOSHI (Querist)
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23 May 2013 sir,
my one client providing the services to the builder he is civil contractor.He is also registered under Maharashtra Vat act. and for service tax. the service receiver is proprietory firm. He is not charging the vat and service tax separately to the service receiver. please guide to fix up the liability under service tax regiment. there are any Lump sum scheme for payment of service tax, secondly, he is eligible for for 50% as partial reversal scheme? and he has started and obtained the service tax registration in the year 12-13 then is he eligible for exemption of Rs,Ten lakhs?
please advice at the earliest. thanks

Jayant Bothra

Jayant Bothra (Expert)
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23 May 2013 Dear Joshi Sahab,

1. Your Client is liable to pay WCT i.e Works Contract Tax. Since the service provided by him is liable to be taxed under VAT and also involves rendering of services.

2. He cannot avail the benefit of partial reverse charge since partial reverse charge is applicable only when services are provided by an individual, firm HUF, AOP, BOI to some corporate and since the receiver is not a body corporate. No Partial Reverse Charge.

3. There are certain abatement prescribed for the construction contracts. You need to check whether you are eleigible for it or not. Kindly refer to n/n 09/2013-ST. Check whether you are providing those services or not.

4. Also check service tax (Determination of Value Rules), 2006.

5. The person can rightly avail the benefit of n/n 33/2012-ST i.e. exemption upto Rs. 10 lacs.

Thanks & Regards
CA JAYANT BOTHRA
email: ca.jayantbothra@gmail.com
blog: cajayantbothra.blogspot.in

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