Works contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2013 My assessee had registered for vat and service tax as a electrical works contractor collecting vat & service tax on service provided to builders. if he is providing service for individual is he liable to collect VAT & Service tax, suggest me in this regard

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 August 2013 Since the service recipient is an INDIVIDUAL, reverse charge is NOT applicable. Accordingly service tax liability is on the service provider.
He will charge service tax in his invoice, collect the same from the customer and deposit with the department.

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2013 What about vat

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 August 2013 VAT is always the responsibility of the seller.
VAT will always be collected by the seller irrespective of the status of the buyer/service recipient.

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2013 thank you for your suggestion

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 August 2013 You are welcome. You should use the thanks button to convey your thanks.