14 February 2013
1) WORKS CONTRACT OF FURNITURE FOR ORIGINAL WORK & OTHER REPAIRING & MAINTAINCE WORK WITH LIMITED COMPANY HOW TO LEVY SERVICE TAX ON GROSS BILL OF RS 10,000/- AS PER NOTIFICATION NO 24/2012 DT 6TH JUNE 2012 SERVICE PROVIDER & SERVICE RECIEVER.
2) THE LTD CO TO WHOM WE ARE PROVIDING SERVICE HAVE TOLD US TO PAY SERVICE TAX 12.36% ON 60% OF THE TOTAL AMOUNT CHARGED FOR WORK CONTRACT ON OLD WORK AND ON ORIGINAL WORK CONTRACT 40%.
3) CURRENTLY WE ARE CHARGING 4.944/% SERVICE TAX AND 50% IS PAYABLE BY SERVICE PROVIDER & 50% BY SERVICE RECIEVER AS PER NOTIFICATION NO 15/2012 SERVICE TAX AND MVAT @ 8% PLEASE REPLY IN DETAILS AND WITH EXAMPLE AS I AM CONFUSED
29 July 2013
You have not clarified whether the Turnover exceeds the minimum limit of 10L. If it exceeds then you are indicated to go for composite scheme for billing and the company is look its interest. You are paying on the basis of reverse charges which is not available for adjustment and set off. So follow the advise of the company.
CAclubindia
