Service tax on works contract while preparing invoices

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2016 Hi,

I want to understand whether its compulsary to be registered under service tax for works contractar if the service provided is below the limit decided....
If not then how the invoices are to be prepared for works contract.. (i.e both Labour & supply are done)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2016 No registration under service tax is required when the taxable service is up to 9 lacs.
Issue invoice without service tax in case below the limit.

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2016 Thanks,
Another point is, whether we can show both labour and supply under the same invoice..
And Vat will be charged only on supply portion

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2016 Yes you can do that.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2016 Thanks Sir,
One more query is if the works contractor is a propreitor and he has ST No.,Also providing works contract service then under reverse charge what is the ratio for collecting Service tax and VAT ( is it 50 : 50 for Propreitor or 75% for VAT & 70% for Service Tax )

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2016 In case of works contract under RCM it is 50%.

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2016 Sir,
Then vat on 75% value & Service tax on 70% value applies in which scenario?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2016 In case of works contract other than original works, like repairs and maintenance contracts.

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Querist : Anonymous

Querist : Anonymous (Querist)