Service tax on work contract

If the contractor gives the VAT & Service tax invoices separately..then Reverse charge mechanism wont be applicable for such works contracts..

When we get the 2 different invoices then it is not applicable to charge reverse mechanism

THE FIRST THING IS APPLICABILITY OF SERVICE TAX,IN THIS CASE IT HAS TO LEVEID ONLY ON THE SERVICE PORTION OF THE CONTRACT.ONCE IT IS DONE THE SECOND QUESTION IS WHO WILL PAY THE TAX.AS PER NEW LAW IT WILL RECIPIENT AS WELL AS PROVIDER OF THE SERVICE 50% EACH IF PROVIDER IS INDIVIDUAL AND RECIPIENT IS BUSSINESS ENTITY.OTHERWISE IT WILL HAVE TO BE PAID BY SERVICE PROVIDER.

No reverse charge is not applicable here because here two invoices are issued separately,one is for service provide and another is for material used,service tax is charged only on the amount of service provided.

In law substance matters over form, since as per contract the service covers under works contract reverse charge would be applicable.

Issue of invoice seperately does not alter the nature of contract.