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
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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