Ajay s (Accounts Officer) (243 Points)
28 February 2011Dear All
We are providing repair service to one of our clients and we are engaging 2 sub-contracors.
We are paying service tax @ 10.3% and producing the chellan to the client and receiving the S.T amount
Now the sub contractor is asking service tax from us , how to solve this problem?
Pankaj Arora
(Learner)
(3134 Points)
Replied 28 February 2011
Sub-contract is right if you are taking service from sub-contract than he liable to charge service tax on invoice.
Ajay s
(Accounts Officer)
(243 Points)
Replied 28 February 2011
But Pankaj Job Value is 100rs Giving 40 rs to sub contractor. then is it possible for us to pay only for 60rs and claim full amount from the client by producing ours and sub contractors chellan??
Pankaj Arora
(Learner)
(3134 Points)
Replied 28 February 2011
Subcontractor will raise bill in your name and you could take input credit. And than you have to charge full amount to client including contractor amount.
Ajay s
(Accounts Officer)
(243 Points)
Replied 01 March 2011
The client will pay S.T amount on producing chellan only. so which chellan we will produce
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 01 March 2011
| Originally posted by : Ajay s | ||
 |
The client will pay S.T amount on producing chellan only. so which chellan we will produce |
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service tax is to be added in bills, and party can not claim for challan etc. they have to pay full tax added in bills, alongwith your registration number printed on bills
Ajay s
(Accounts Officer)
(243 Points)
Replied 04 March 2011
Thanks Mr.Sharma
But the tender itself saying S.T amount will reimbursed by producing chellan only
now what is the remedy
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 04 March 2011
we are discussing here the views and rules of servicetax, and tender granting authority does not have power to check the challans, but they have to pay on basis of invoice only,
in such case u can produce the copy of challan from sub-tender ppls, with yours but its not prescribed in rules.
CAclubindia
