02 June 2014
HELLO SIR, I AM HAVING ONE BILL CONTAINING LABOUR + MATERIAL CHARGES FOR WORKS CONTRACT ON WHICH NEITHER SERVICE TAX NOR VAT IS LEVIED AS THAT INDIVIDUAL IS NOT REGISTERED UNDER BOTH ACTS. SO WHETHER WE SHOULD PAY SERVICE TAX UNDER REVERSE CHARGE MECHANISM OR NOT?
02 June 2014
if service receiver is business entity registered as body corporate . even though service provider can get small service provider exemption saying not having taxable turnover . . but service provider have to discharge his part of service tax . in case of workcontract service 50% of service tax is payable by service receiver . . please note under reversecharge service tax liability of service provider and service receiver are independent and they are liable to their respective share
02 June 2014
For the reverse charge the liability for the body corporate is triggered if the service provider is an individual huf partnership etc. irrespective of whether the provider is liable for service tax or not.
The exemption for the corporate recipient of service could be possible only if he is situated in an non taxable or exempted territory.
CAclubindia
