Service tax

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Yash Dave (Querist)
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01 August 2012 A WORK CONTRACT ORDER OF FURNITURE FROM LIMITED COMPANY RECIEVED BY FURNITURE MAKER HAVING VAT TIN NO & SERVICTAX NO HOW TO CALCULATE THE SERVICE TAX AND WHAT WILL BE THE TAX LIABILITY OF SERVICE TAX IF BILL AMOUNT OF RS 50,000/.

PLEASE EXPLAIN WITH EXAMPLE OF CALCULATION UNDER FIRST RULE & SECOND RULE BOTH & WHETHER
TAX LIABILTY WILL BE SHARED BY BOTH SERVICE PROVIDER & SERVICE RECIEVABLE AS PER NEW AMBENTMENT FOR 1 JULY 2012

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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02 August 2012 The Value of material transferred if available then on that VAT would be paidon the balance service tax would be paid.
If not available then on 40% ST wouldbe paid.
If SP is indivdiual firm etc then he needs topay 50% of the ST liability and the reciver of the service being a body corporate would pay the balance 50%.
If SP is not specified then liable to pay 100%
Read an articleor book for comprehensive understanding.

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