CA Ankit Agarwal (CA, CS) (703 Points)
06 April 2016Is a company required to pay service tax on repair of vehicle done by a local unregistered repairing garage? The garage has furished a declaration that the total value of services provided by him does not exceed 10lacs during the year and does not have a service tax registration number.
V P Narasimhan
(Accounts Manager)
(793 Points)
Replied 07 April 2016
SO LONG AS YOU ARE HOLDING HIS DECLARTION YOU ARE SAFE i BELIEVE !
Madhukar N Hiregange
(Chartered Accountant)
(39039 Points)
Replied 08 April 2016
The service provided by the service station is a works contract. You need to pay ST on 50% of 70% of his bill if you are a corporate.
The garage need not pay as they are be;low 10 Lakhs.
Niraj Kumar Sinha
(Sr. Officer, SPSIL)
(648 Points)
Replied 08 April 2016
Status of Service provider for RCM has no means.
If service receiver is liable to pay service Tax under RCM, he has to pay the service tax, whether service provider pay service tax or not.
CA Ankit Agarwal
(CA, CS)
(703 Points)
Replied 18 April 2016
Thank You sir
If the labour charges are mentioned seperately , then straight away 50% S.tax on labour charges is payable ?
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