Works contract

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Swamy

Swamy (Querist)
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02 December 2015 Dear experts, in regard to reverse charge please let me know what is the receiver libility

Trinadharao Adigarla

Trinadharao Adigarla (Expert)
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02 December 2015 The works contract service is covered under the reverse charge notification no. 30/2012. The liability of service tax under said service shall be paid equally by the contractor/provider of service and the recipient of the service. That is fifty percent of the service tax liability shall be paid by the contractor and the balance 50% shall be paid by the recipient of the service. In short, the service tax shall be paid at 14% (prevailing rate) on 40% or 70% of the total works contract, as the case may be, by the provider of service and the receiver of the service on equal sharing ratio i.e.50:50 ratio.

Swamy

Swamy (Querist)
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02 December 2015 Thank u dear. Isn't changed for 100% by service receiever in 2015???

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Trinadharao Adigarla

Trinadharao Adigarla (Expert)
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05 December 2015 YES, Only 50% is Service Receiver paid