We have given a work to a contractor for supply and services of a particular job. Party has submitted separate bills for Supply & Services of which supply includes VAT @ 5 %( as per WB VAT rules) but the services bills provided by the party doesn’t includes anything. Party has done following services for us;
1. Cable Tagging 2. Rerouting & dressing of cables 3. Pluging of Unused holes 4. Errection of Canopies 5. Cable laying termination 6. Installation Gas Detector & etc
My question is that whether we are liable to pay Service tax under the reverse charge mechanism for the services done by the contractor. If “Yes” then under which categories and if “No” then why.
Please suggest.
CAclubindia
