Laibility of service tax under works contract

This query is : Resolved

MOHIT SHARMA (Querist)
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29 June 2015 i am an individual providing works contract service of Rs.2050000 to a company in the year 2014-2015.

kindly tell me wether i would be liable to pay service tax...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 June 2015 1. 50% of the service tax is payable by you and the remaining 50% is payable by the 'company'

2. Service tax rate is 5.60% (for original works) and 9.80% (for other works) on the works contract value. Please see notification 11/2014 ST.

3. If it is the first year Rs. 10 lac can be claimed as exempted turnover.

CA. Ankit Chandrakar

CA. Ankit Chandrakar (Expert)
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29 June 2015 The applicable rate for service tax on Works Contract are:

5.6% on original works and,
9.8% on other works as rightly said by Mr. Warrier.

You are liable to pay 50% of the total applicable service tax PROVIDED the service receiver is a "company".
Otherwise, the whole of the tax liability to be discharged by you only.

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