our company (ltd) doing works contract business( construction). we have given sub contract to an individual for labour supply. he is not having service tax registration. need we remit service tax (75%) on his bill under reverse charge?
what if sub contractor is having a turn over of less than 9 lakh?
reverse charge mechanism will not apply.
Dear, member thank you for your reply!
can you pls make it clear?why it will not apply....
Recipient will pay the service tax on the value of 75%, service provider (labour supply) is an individual and they are exempt (SSI) from service tax on the value of 25%.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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