06 April 2012
section 68(2) has been amended to consider the service provider and service receiver both as person liable to pay service tax to the extent specified against each one of them in certain cases..
my query is relating to works contract..
for works contract service: % of service tax payable by the person providing service is 50%
% of service tax payable by the person receiving the service is 50%
my question is: 1) how the assessee should prepare bill what will be the break-up
2)is there a need for assessee to take service tax number of the person receiving the service
3)if suppose service receiver doesnot have s/t number then what?
4)if suppose the service receiver doesnot pay his share of tax then who will be liable for that tax,int,penalty?
09 April 2012
1) Bill should indicate 100% st. 2) Service receiver is liable to pay 50% st irrespective of 10 Lac limit hence SR needs to be registered with st. 3) First get registered , then pay and then file returns (interest and penalties for being late - if any) 4) If doesnt pay - SR will himself be liable to extent of 50% , interest and penalty thereon.
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