05 September 2012
Dear Sir please clarify the service tax implication in the situation given under,
Mr.A,Contractor,and Mr.B,contractee, entered in a contract of work for Rs.20,00,000/-. Mr.A gives a sub contract for the same to Mr.C,sub contractor, for Rs.15,00,000/-.and remitted service tax(on 15 lakhs). clarify that whether Mr.A should have charged ST on the bill given to Mr.B for the full amount(ie 20lakhs) or the balance amount(20lakhs less 15 lakhs)
Guest
Guest
(Expert)
05 September 2012
Mr A should charge service tax on Rs. 20.00 lakhs and claim CENVAT credit on Rs. 15.00 bill raised by Mr. C.
CAclubindia
