Service tax reverse charge

Dear Friends,

I want to know in case Work Contract Services, A Company receives Work Contract Service from an Individual and such individual has charged Service Tax in Invoice @ 4.944% on Taxable Value (100% Value). Service Receiver Company has paid 4.944% service tax on bill to Service Tax provider and provider has deposited that amount with Govt A/c.

 

(As per Service Tax Reverse Charge Rules, There should be 50% of 4.944% should be charged by Service Tax Provided and balance should be paid by Service Tax Receiver @ 50% of 4.944%).

Pls advise, whether company would be liable to pay that 50% of 4.944% even in when company has paid 100% of 4.944% to Service Provider.

 

Pls suggest and may confirm for any query.

 

Thanks

Replies (1)

yes. in the instant case service provider by oversight charged full service tax instead of 50%. now as per my view you should pay 50% of your part again and on the other hand take ITC  of that so no lossof money.

communicate with that contractor not to repeat this mistake again.

100% service tax paid to contractor which he deposited in government also will be eligible for ITC so no loss of money. hope matter is clear to you

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