Service tax reverse charge

CA Surya Pratap Singh (CHARTERED ACCOUNTANT) (67 Points)

25 March 2013  

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.