Happy CA Day! Get 10% OFF on CAclubindia Pro 1-Yr & 2-Yr Plans. Subscribe Now!

Service tax liabilities

602 views 1 replies

Rashmi

Accountant

140 Points Posted on 20 April 2014

Hi, Good Morning to all experts.

Mr. A is a proprietor of XYZ Enterprises, by nature labour contractor for shuttering work, but he has opted service tax no very late and registered with work contract category, and asking his builders to provide service tax for A.Y.12-13, & A.Y.13-14, the good thing is that, all builders are ready to pay service tax, but the question is what would be the % of tax liabilities of him, some builders are corporate I mean limited and some of them are proprietorship.

And here the important thing is Mr. A. has not issued any bill to them, all payment he has received as advance.

My question is, does he need to collect 100% tax I mean 12.36% on each and every advance amount, or he can follow notification 30/2012 no.8, I mean 25% .

Please reply soon.

Replies (1)

Ria

MBA

30 Points Posted on 20 April 2014

1st of all he need to amend his service tax registration as manpower supply service or he can keep both service category and have to collect the tax @ 12.36% on 25% of invoice amount. Like 3.09% of invoice amount and the bill/invoice must have indication that the service tax payable by service receiver @ 75% of taxable amount with notification no. 30/2012 entry no.8 under reveres mechanism along with other detail complying with rule 4A of service tax rules, 1994

Note: Mr. A is liable to pay Tax, Interest and penalty (non filling f return)