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?
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.
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.
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