Reverse tax wrong payment

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by a wrong presumption as works contract service 50% tax paid by awarder and 50% by service provider.department categorised it as errection installation service and sent showcause notice demandinding balance 50% also from service provider.challan no and details of tax paid by awarder and his certificate produced but demands blance 50% from service provider.is there any favourable case law or notification.

Replies (5)

You wont find any specific case law on this situation. The situs of services will be determined prima facie, If its indeed erection & commissioning, (1) either contend for bona fide of case and make out a prima facie case of revenue neutralization (2) or pay the service tax of service provider portion and take refund of service receiver portion. Stay will be easy in this case.

Awarded large organisation.not ready to claim refund.

Dear one,

Probably the query lacks complete information however i would like to highligh the following

Works contract service is a composite contract of (sale + service ) i.e it involves transfer of property in goods and service in relation to te same .

2. Erectioning is a service provided by the service provider to service recipient for Erectioning of the plant or machinery or any other fixed asset. 3. Installation service is a service provided by the service provider to service recipient for installation of the fixed asset. By installation we mean putting the fixed asset into a condition ready for its use.

Question is not about type of service but what is the remedy if reverse tax is wrongly deducted and paid by awarder?

Service receiver may also take cenvat of it


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