07 August 2013
PLS.EXP.WEATHER PROVISION OF S.S.P. IS APPLICABLE ON REVERSE CHARGE.I.E.IF INDIVIDUAL OR FIRM FROM WHOM WE ARE TAKING LEGAL SERVICE IS COVERED UNDER SMALL SERVICE PROVIDER,THEN SHOULD WE GIVE SERVICE TAX UNDER REVERSE CHARGE.AND IN CASE OF WORK CONTRACT SERVICE, IF CONTRACTOR IS NOT CHARGING ITS 50% SERVICE TAX,THEN SHOULD WE GIVE OUR 50% SERVICE TAX UNDER REVERSE CHARGE TO GOVT.PLS.EXPLAIN.
In your query you have not mentioned anywhere that you are service receiver and you are company, or firm or individual. The reverse charge mechanism applies mostly to companies, registered body corporate.
08 August 2013
It is okay Ankit. Irrespective of service provider's turnover and business category, reverse charge is applicable to service receiver. For your query, advocate fee is applicable to you (company) even if the value of bill is Rs.100/=.
For the second question, even if the contractor does not charge any service tax in his bill, as a company 50% liability is there. i hope you know the tax working for works contract
08 August 2013
In case of work contract,suppose if bill is of Rs.1,000/- Then tax liablilty after abatement is 1,000 * 12.36% *25% = rs.30.9/- hence our liablility is 50% of rs.30.9/- i.e. rs.15.45/-.AM I CORRECT?
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