riddhi (student) (746 Points)
02 February 2017
Nikhil Sharma
(Government Service)
(539 Points)
Replied 02 February 2017
In case of separate bill, vat as applicable will be charged on material and service tax @ 15% will be charged on service portion.
In case of combined bill, service tax @ 15% will be charged on 70% of the total amount.
And if these services are provided to organised sector( firm, company etc) then reverse charge will become applicable. Then 50% of total service tax liability will be paid to government by service provider and 50% by service receiver.
riddhi
(student)
(746 Points)
Replied 02 February 2017
The service receiver is a company. So abatement will be 30% only if they give a combined bill. I think service provider is an individual. Thanks a lot
riddhi
(student)
(746 Points)
Replied 02 February 2017
Also , 50% service tax will be paid after the abatement so on 70% i will pay (15%*50%)
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