Service tax liability
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 October 2012
A trust hires plumbing contractor & electrical contractor for a building which is being constructed. The plumbing contractor is a company and the electrical contractor is an individual. Both are charging composite service tax @ 4.944%. Now according to the new rules of service tax, who is liable to pay service tax? Is some liability shifted towards the trust also?
06 October 2012
Rate charged by both is incorrect
Rate of(4.944%) 4.8% + 3% Edu cess is uoto 30.06.2012
After 01.07.2012 rate is 12.36 % but Taxable value on which service tax charged may vary as follows
1. original works 40%
2. Repair 70%
3. other 60%
As stated in query Plumbing contract is company so 100% service tax liability on him. rate may be (60*12.36%)=7.416%
Electrical contractor is individual so 50% liability on your account
rate may be (60*12.36%)=7.416% 50% of this (3.708%paid by you directly to department under reverse charge
3.708% he charge to you
Rate of(4.944%) 4.8% + 3% Edu cess is uoto 30.06.2012
After 01.07.2012 rate is 12.36 % but Taxable value on which service tax charged may vary as follows
1. original works 40%
2. Repair 70%
3. other 60%
As stated in query Plumbing contract is company so 100% service tax liability on him. rate may be (60*12.36%)=7.416%
Electrical contractor is individual so 50% liability on your account
rate may be (60*12.36%)=7.416% 50% of this (3.708%paid by you directly to department under reverse charge
3.708% he charge to you
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Tds on building rent monthly
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Confusion around Form 26QB fields
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
Trending Online Classes
CAclubindia
