Service tax on works contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2014 Sir

I am working in a company and we have given a contract for renovation of toilet.

Now we have received the bill and they have charged service tax on 50% of labour charges portion only.I have the following queries.

1. whether we have to pay service tax on balance 50% of labour charges on reverse charge basis.

2. Can we claim the cenvat credit of service tax paid by us and as well as charged on bill??

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 August 2014 1. Partial revese charge is applicable on works contract.
2. You have to pay 50% portion of service tax
3. You can avail CENVAT credit of service tax paid to service provider as well as service tax paid under reverse charge