03 January 2014
one of my client being a Pvt Ltd Co.registered under Service tax for Works Contracts Services.The company providing the said services to another Pvt Ltd Co. Hence Partial RCM is not applicable to my client i.e. 100 Service Tax Liability is to be paid by my client.
Now My client has given a sub contract to another Sub contractor who is also registered under works Contracts Services with ST Dept as Individual.He is raising a Bill to us by using Partial RCM in that case 50 of ST liability is to be paid by my client as Service Receiver.
Now query is whether the aforesaid ST liability paid by my client being 50 as Service Receiver can be set off from my clients total ST liability 12.36 so far Service Provider original works Contract with another Pvt Ltd Co is concerned. That is how much amount is to be paid by my client as Service Provider as well as Service Receiver under Works Contracts Services are concerned.
03 January 2014
Total output Service Tax Liability @ 12.36
less Total Service tax paid as a input Credit
6.18 provider 6.18 Receiver
Both Claim as a input Credit
like your charged another company Rs. 200 then liablitiy is 200*12.36 % 24.72
and you received form sub contractor for Rs 100 then you paid department @ 6.18 % and your subcontractor also paid @ 6.18 % then you get cenvat credit @ 12.36 on 100 Rs.
so your total liability is 24.72 less input credit 12.36
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