Work contract service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2015 whether servicing of vehicle by service station(individual) to a body corporate comes under work contract reverse charge?

there is a bill of servicing of vehicle in which he is claiming service tax @12.36% on labour charges.
now being a body corporate should we comes under work contract reverse charge and should we deduct half of service tax from his bill and pay to govt.

PAWAN KUMAR

PAWAN KUMAR (Expert)
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15 July 2015 Yes, you need to pay the 50% service tax as per provisions under reverse charge mechanism.