Wct- reverse tax applicability in st

In the bill if they, mentioned full ST, then no need to pay any ST under RCM on such bill,

if they have mentioned ST under RCM with notification no., then ST to be paid under RCM for WCT for such bill.

service tax abatement 30% service tax to be calcualated at 70% value on which 50% shared by provider and 50% will be shared by receiver 

Originally posted by : sivaram
	service tax abatement 30% service tax to be calcualated at 70% value on which 50% shared by provider and 50% will be shared by receiver

agreed!!! RCM applicable if the Service Provider is other than body corporate

And seperately shown of labour value doesnt matter to determine taxable event in case of works contract services

Vendor submiited invoice showing material and labour portion seperately, whether we can pay ST on labour portion only under WCT with abatement. Vendor is prop.ship firm

If Material and Labour value are inseperable then 30% abatement available. In Your case as the Labour Value is seperable no abatement available. On Portion of Labour value you have to 50%( rate 7.5%) of Service tax and vendor(Proprietor) has to pay balance 50% of Tax