Tds & service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2013 WAGES TO CONTRACTOR for supply of labour- Rs. 235969/-
SERVICE CHARGE FOR SUPPLY OF LABOUR- Rs.10150/-

PAYMENT HAS BEEN MADE FOR SUPPLY OF LABOUR.

Please help me regarding deduction of TDS & applicability of Service Tax on Above.

Anand

Anand (Expert)
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02 January 2013 Hi
1. TDS
You will have to deduct TDS on total bill amount @ 1% ( if Individual or HUF) or @ 2% ( Firm or Co or LLP) under Sec. 194C ( Contractors)

2. Service Tax
Due to reverse charge in application you will have to pay Service Tax 25% of total Service Tax Applicable on the bill whether or not the same is appearing in the bill in your case Rs. 7605/-

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2013 thank you sir for your quick response but
reverse charge is applicable on 75% or 25 %.
please clarify

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@VaibhavJ

@VaibhavJ (Expert)
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02 January 2013 Hi

Service Tax is applicable @ 25%

Thanks!!

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2013 party is charging Service tax on 25% on rest 75% what is the criteria?? please help

@VaibhavJ

@VaibhavJ (Expert)
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03 January 2013 hey

Service Receiver has to pay 75% & provider has to pay 25%.

Pl refer article : https://www.caclubindia.com/articles/reverse-charge-mechanism-in-service-tax-an-overview-15865.asp#.UOUy_2-yCnE

Thanks!!