Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2012 Hi
we are the service providers,as per new service tax rules we should collect 50% of service tax from service receivers.

my doubt is how much mount pay to dept 50% or 100% ?

RENGARAJ R.K

RENGARAJ R.K (Expert)
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09 August 2012 Dear Sir,

You are asking about reverse charge mechanism. If your services are coming under 50% means, you have to collect 12.36% on 50% of the bill value and have to pay the amount collected fully. The other 50% of the bill value will be under reverse charge and service receiver will pay the equal amount to the dept. By the by, what is the service the question relates to? Because it it is works contract abatement is to be considered.

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2012 sir

we are the interior contractors and we have to pay s tax under composite.

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