My client is private ltd co and engaged in real estate as builder cum developer.
The company is recieving invoice from sub contractor who provides labour. However, we have checked and confirmed that labour are not under supervision of company hence reverse charge mechanism not applicable.
My querry is
Is there any provision in service tax law which obligates the company to get the registeration number of that contractor and get the tax deposited.
I mean if that contractor is not charging service tax, in that case is the company legally bound to force that contractor for service tax compliance.
24 January 2015
If the contractor is individual/firm/AOP reverse charge is applicable to your client being Co. If service tax is claimed in the invoice the invoice should contain the service tax registration No. For the first time service tax up to 10 lakhs not payable. As invoice value exceed 9 lakhs advice the contractor to get registered under service tax. Advice your client get registered under service tax and pay service tax under RCM.
CAclubindia
