banner_ad

Liability to deposit service tax

Notifications 12454 views 4 replies

A partnership firm is engaged in Construction business. It has appointed a Contractor(which also is a partnership firm) on Work Contract to build the basic structure of building.

 
 Now the Service tax charged by Contractor should be deposited by itself or should it be deposited by Service recipient which in this case is a Partnership Firm? 
 
Under reverse charge notification it is written that service tax to be deposited by service recipient only if it is a Body corporate?
 So what if Service Recipient is a Partnership Firm and Service Provider is also a partnership firm?
Replies (4)
Reverse charge mechanism doesn't apply to the above stated case and provider of service is liable to discharge service tax liability

Say, A is the principal contractor who has given sub-contract to B for Work Contract. Both are partnership firms. Reverse Charge is not applicable. 

B will charge service tax @ 12.36% on service portion of work contract (40%/60%/70% of gross amount charged). A shall be eligible to take Cenvat Credit of Service Tax charged by B. And A shall charge service tax @ 12.36% on service portion from its customers, subject to other conditions.

RCM not applicable

RCM ONLY APPLICABLE ON COMPANY .

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details