ravindra dave (dy.general manager) (24 Points)
17 July 2014Sir (s)
We are setting up the industry located in M.P. nature is private limited co., We are receiving the services regarding civil construction with different contractors for different location in plant. The contractors are not registered with Service tax department i.e. their work is under 07.00 Lacs per contractors. Total 3 contractors are doing their job at ours location.
Please, advise us the ours tax liablity in view of service tax.
Regards
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 19 July 2014
Sir,
In this regard if any person provided or agree to be provide taxable services in taxable territory then liability to be paid only service provider but under Reverse Charges Mechanism some taxable services liability to be created both parties i.e. service provided or service receiver on partial basis w.e.f. 20.06.2012 and have to pay both tax liability i.e. service receiver and service provider on their ratio.
Now we are given some services regarding your business as follow:
|
Taxable services |
Service Provided |
Service Receiver |
|
Supply of Manpower |
25% |
75% |
|
Work Contact services |
50% |
50% |
|
Suport Services |
Nil |
100% |
The whole tax liability on the basis of their ratio only both side tax liability not exceeding @ 12.36%.
If you having some observation plz forward the same.
Pooja Mundra
(Article Assistant)
(43 Points)
Replied 19 July 2014
Body cororate ,if not a SSI, is liable to pay the service tax of its part i.e. 50% of service tax amount irrespective of the case whether service provider is SSI or not.
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 21 July 2014
It is applicable only thair portion.
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