Service tax on civil work with different contractors

404 views

Save Share

ravindra dave

dy.general manager

21 Points Posted on 17 July 2014

Sir (s)

We are setting up the industry located in M.P. nature is private limited co., We are receiving the services regarding civil construction with different contractors for different location in plant. The contractors are not registered with Service tax department i.e. their work is under 07.00 Lacs per contractors. Total 3 contractors are doing their job at ours location.

Please, advise us the ours tax liablity in view of service tax.

Regards

Replies (3)

Harendra Kumar

Tax Advisor

1502 Points Posted on 19 July 2014

Sir,

In this regard if any person provided or agree to be provide taxable services in taxable territory then liability to be paid only service provider but under Reverse Charges Mechanism some taxable services liability to be created both parties i.e. service provided or service receiver on partial basis w.e.f. 20.06.2012 and have to pay both tax liability i.e. service receiver and service provider on their ratio.

Now we are given some services regarding your business as follow:

Taxable services	Service Provided	Service Receiver
Supply of Manpower	25%	75%
Work Contact services	50%	50%
Suport Services	Nil	100%

The whole tax liability on the basis of their ratio only both side tax liability not exceeding @ 12.36%.

If you having some observation plz forward the same.

Pooja Mundra

Article Assistant

41 Points Posted on 19 July 2014

Body cororate ,if not a SSI, is liable to pay the service tax of its part i.e. 50% of service tax amount irrespective of the case whether service provider is SSI or not.