Service tax liability on civil bill

This query is : Resolved

Ravinder chandel (Querist)
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17 February 2014 Dear Experts,

I am working with a Hydro Power Company. we have given our tunnel construction work to a contractor. Contractor is not charging service tax on bills .I want to know that :-
Q1 Should the contractor has to charge service tax on bill or Not ( & which rate )?
Q2 what will be our ( company's) liability of service tax.(which rate)?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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17 February 2014 1. Civil contract is covered under partial reverse charge mechanism.

2. The service recipient is liable for 50% of the service tax liability. This is valid even if the service provider is not charging service tax.