Nikumbh (Practitioner CA) (59 Points)
12 January 2013
Dear All,
One of the my client is doing business of under works Contract Tax (Only for Labour Lob ) but registered in Service Tax as a WCT
1) What will be the rate of Service Tax on the time of issuing invoices under WCT
Regards
Nikumbh
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 12 January 2013
If the labour & material are seggregated, then the labour services amount shall be chargeable @ 12.36%
If the composite bill is made, then the same shall be taxable @ 12.36% of the following amount of gross amount charged in the invoice:
---Original works--------------------------40%
---Repair/maintenance of goods----70%
---Others------------------------------------60%
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 12 January 2013
Registration is irrelevant now. Only the valuation wouldbe an issue.
Nikumbh
(Practitioner CA)
(59 Points)
Replied 12 January 2013
In our job there is no materials only labour job
Sonu Kumar
(Account Manager)
(665 Points)
Replied 12 January 2013
In Your Case Service Receiver Will Pay Service Tax Under Reverse Charge Machanism
Nikumbh
(Practitioner CA)
(59 Points)
Replied 13 January 2013
Under reverse machanism only 50 % paid by service receiver. But what will be rate
CAclubindia
