Urgent- reversal service tax for work order service ????????

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2012 Dear Experts,
we have issued one work order of Rs.20 Lacs.30% of above contract value is installation part and service tax is applicable on installation part.

contractor has submitted the bill, which is for supply not for installation.

now question is under one contract for work order service, what is the applicability of reverse Service charges in this scenarion. is reverse service tax is also applicable on supply bill and if it is part of the work order for work order service.

Thanks & Regards,
Ravinder

CA bhargava

CA bhargava (Expert)
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08 December 2012 If the bill doesnt have any service part., then 40% of the bill will be considered as the Service part., and u will be liable to pay 50% of the service tax payable on the reverse charge mechanism.
in this case u will be liable to pay 2.472% as service tax on the total bil..

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2012 Dear Mr. Bhargava,
what happens, if contractor is submitting supply bill after charging vat then still reverse service tax will be applicable or it will be applicable when contractor will submit the installation bill.

Regards,
Ravinder

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