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Service tax querry?

rates 667 views 3 replies

vinayak

-article assistant

93 Points Joined May 2011

i am article assistant doing internal audit of construction company.while vouching the expenses of the co i had the following querry 1.when can a service provider(interior decorator) claim service tax at the rate of 4.944%? 2.what are the conditions where the service provider claims reverse charge and has to pay only 50% of the amount of service tax and the other half is paid by the service receiver?

Replies (3)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

1. when cost of material is included in total amt paid to interior decorator, then he can charge s.tax @ 4.944% after taking into consideration the provisions of act and abatement available. in this case, 60% of total amt is claimed as abatement and s.tax is charge on only 40% of billed amt.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

when service provider gives services to a company then prov. of reverse mortgage comes into play and then service provider is reqd to pay s.tax on 50% value only.