Service tax charge as per govt. rule

In the case of PSUs they have to register under ST laws and have to collect 50% of the applicable tax while making payment to vendors. In your case,the abatement is 60% for original works and 40% for repair works.It means the PSUs have to collect 50% of ST applicable @ 12.36% on 40% of the bill value for original works and similarly on 60% of bill value for maintenance works while making payment to vendors. The contractor has to obtain a certificate from the PSU for the collection they have made and paid to the ST dept. Based on this certificate the contractor has to pay only the balance 50% of ST to the department.If any excess payment has been made and a return also has been filed wrongly amend/revise it within three months and carry forward to the next period. If it cannot be carried forward file a letter to the ST dept along with a manual return claiming a refund.......mjk