Works contract

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Swamy

Swamy (Querist)

02 December 2015 Dear experts, in regard to reverse charge please let me know what is the receiver libility

Trinadharao Adigarla

Trinadharao Adigarla (Expert)

02 December 2015 The works contract service is covered under the reverse charge notification no. 30/2012. The liability of service tax under said service shall be paid equally by the contractor/provider of service and the recipient of the service. That is fifty percent of the service tax liability shall be paid by the contractor and the balance 50% shall be paid by the recipient of the service. In short, the service tax shall be paid at 14% (prevailing rate) on 40% or 70% of the total works contract, as the case may be, by the provider of service and the receiver of the service on equal sharing ratio i.e.50:50 ratio.

Swamy

Swamy (Querist)

02 December 2015 Thank u dear. Isn't changed for 100% by service receiever in 2015???

Trinadharao Adigarla

Trinadharao Adigarla (Expert)

05 December 2015 YES, Only 50% is Service Receiver paid

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