Reverse charges mechanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2012 I have query regarding reverse charge mechanism rule, We are infrastructure co, we have taken a contract and subcontracted to another contractor, Whether we have to pay service tax as per reverse charge mechanism or not ?
The subcontracted is small contractor he has not receipt more than Rs 10 lacs. Please guide me.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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26 December 2012 you are liable to pay service tax on reverse charge method even if service provider is under SSI. You will pay the service tax on 50% of the total value.

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2012 Thanks for your quick response

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