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Reverse tax on plumbing contract

Queries 755 views 4 replies

safeer.v

Head of Accounts & Finance

69 Points Joined September 2008

SIr,

We are Interior Work Company and we have outsourced Plumbing work to one Individual subcontractor who doesnt have ST registration. We are Giving Plumbing material to him for executing the work. Now my query is that whether we require to Pay ST on reverse charge basis? Please advise at the earliest.

Replies (4)

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Sir,

Service tax is applicable on such service under RCM i.e. called Support services or may be clubbed in Work Contract services. Read very carefully Notification No. 30/2012 dt. 20.06.2012.

safeer.v

Head of Accounts & Finance

69 Points Joined September 2008

Hi sir. Thanks. Also please clarify if the service provider is small service provider(below 10 lakh Turnover) and he is not collecting 50% of st, whether we have to pay 50% of st in this context.

safeer.v

Head of Accounts & Finance

69 Points Joined September 2008

Hi sir. Thanks. Also please clarify if the service provider is small service provider(below 10 lakh Turnover) and he is not collecting 50% of st, whether we have to pay 50% of st in this context.