Service tax rae on repair work carried in society

Our society is doing repair works and have received quotation.

But the vat and st structure of all 3 tenders look different.

We gave contract to 1st tender and here it looks he is quoting 15.41% as vat and st whereas for others it stands around 12.4%.

Who is correct?(Pease download and rotate picture as i am facing problem uploading i)

https://i.imgur.com/RhXLMCk.jpg

Replies (4)

Dear sohil,

According to me all the three have wrongly charged services tax.

The work mentioned in the tender should fall under WCT(other works category).

WCT falls under partial RCM which means 50% is the laiability of service provider and 50% is the liability of service reciever.

It also carries an abatement of 40% i.e. 60% is the taxable portion.

So in case of 1st tender the calculation goes as follows :

ST to be charged by Service provider : (Total amt excl VAT)*50%*60%*12.36%

=703600*50%*60%*12.36%

= Rs. 26,089.488

The same amount of service tax should be paid by service reciever under RCM.

Experts do provide your feedback !

 

You mean to say the society needs to pay the tax to st department directly or  the contracted will forward the same.Also what about  the.  Vat rates?

Service tax under Reverse Charge Mechanism (RCM) has to be paid by the soc directly to the ST department.

Service tax des not apply on VAT amount. ST is applied on Gross amount(excl VAT).

 

Thanks ALso wanted to ask is vat calculation correct?

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