Works contract reverse charge_valuation,abatement&procedures

Reverse Charge on Works Contract is payable, if

Service is provided by HUF/Individual/Partnership Firm/Aop[LLP] to Business Entity registered as Body Corporate located in taxable territory.

There is no abatement. STVR Rule 2A provides for valuation.

So there is no abatement.Can we consider method of valuation of works contract under simple method.ie 40%&70% as abatement.

Can any one explain the meaning / conditions for Rev.charge applicability.As Works contract for TDS & VAT is different for Rev. Charge.

Should i consider all works contract invoice or Works contract awarded by a company to others and labour services is provided in the premises of company only as works contract for Rev.charge purpose.

please comment on the meaning of Works contract for Rev. Charge purpose.

As vehicle maintenance ( Works contract ) invoice issued by(Service provider)  party & charged entire service on invoice.

Since Entire ST is paid by provider.Is it necessary to pay rev.charge by service reciever.

Is the above case not included in the definition of works contract for rev.charge purpose.

As labour service is not provided in the premises of Service reciever to pay rev.charge.

Let me make it simple.pls comment

1st party (Pvt ltd)Service reciever & 2nd party (Firm) Servicer Provider.

Service : Vehicle Maintenance

Invoice is inclusive of

Works contract tds & 12.36 % of 40% of invoice (works contract valuation of orginal Works contract)

As 50% of works contract is payable by service reciever under partial reverse charge mechanism & Awarder of works contract is liable for deducting WC Tds.

In above case, liability of service reciever is included in the invoice of service provider.

Is above case justifiable.?

Can anyone explain the meaning of Works contact for service tax purpose under partial reverse charge mechanism.

If service provider is Partnership Firm & Service Receiver is a Body Corporate

Service Tax to be charged in the invoice : 40% Value x 12.36% x 50% = 2.472% effectively

and service receiver should pay balance 2.472% under Partial REVERSE CHARGE

If service provider has levied service tax @ 40% x 12.36%, even then service receiver shall pay service tax under reverse charge mechanism as he is the person liable to pay service tax under RCM for 2.472% i.e. 50% part. In such case, do not pay service receiver including service tax @ 40% x 12.36%..Calculate amount payable by levying service tax for 12.36% x 40% x 50% and make payment to service provider at reduced rates.

Service provider would not be at any loss as the excess service tax paid by him to the department can be adjusted in future period and your making payment at lower rates would amount to renegotiation of value of service.

Our company did same for Service tax and works contract tax.As service preciever/Awarder  is liable to do both.

What all expenses fall within the meaning of works contract for reverse charge puurpose.

Should we consider all invoices without any written agreement as works contract or not.

Refer to the meaning of Eligible expenses mentioned under Service Tax Valuation Rule - 2A

Whether a canteen operator in a factory will be treated as works contractor for purpose of charging service tax from the company.