I have a vendor providing work contract. He has raised a bill of Rs.12lacs+service tax and vat.
On the bill he has not mentioned his S.T No. The vendor informed that he has applied for ST no.
So I just want to know that can he charge service tax though he has not received the number of the same ?
thanking you in advance
If he has applied then he must have got the provisonal number which becomes the St number when department approves the document. He can mention that number on invoice. He can charge the same.
Agree with Ms. Parmita :-)
Further, if you are a body corporate, and the service provider is an individual or partnership firm, then under the Reverse Charge Mechanism vide Notification no. 30/2012, you are liable for 50% of the service tax in case of Works Contract (Service Portion). So kinldy check. In that case, the vendor should charge only 50% service tax ie. 6.18% instead of 12.36%.
Regards,
Manoj (tax2001-it @ yahoo.com)
Its a LLP. So even that would be covered by RCM ?
LLP stand at par with partnership firms. So if the service provider is a LLP and you are a Body Corporate, then RCM is applicable. If SP is a firm and you are LLP, then RCM not applicable and SP should pay full tax.
Note: Body Corporate is not defined under New Sec 65(B), but was defined under earstwhile Sec 65.
LLP is not a company registered under the Companies Act, 1956.
Thank a ton....!!!!
CAclubindia
