I am working in a Company engaged in providing Infrastructure Support Service and Renting of immovable property.
Current year Company Receiving Work Contract services (For Construction of Office Complex )from Many Contractors.(Individual & Firm). till Date these contractors are Charging Service Tax (100%) After Abatement i.e 4.944%. and company also Paid all Bills of Contractors. after notification 30/2012.Reverse Charge Mechanism 50% Service tax payment Liability of Service Receiver. and our company do not Follow Notification 30/2012 . what will effect and how can we rectify this. Please Suggest.
08 February 2013
The Notification No.30/2012-ST dated 20-06-2012 came into force from 01-07-2012.
The Liability under the Act can not be transferred since the Contractors has paid the tax that does not mean that you have not to pay the tax on 50% value. Pay tax by GAR-7 with interest @ 18% PA and avail credit of the same under CCR,2004.
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