St reverse charge mechanism

Muhammed (Chartered Accountant) (251 Points)

30 December 2015

SERVICE CHARGE REVERSE CHARGE MECHANISM FOR SUB CONTRACTS

WHAT IS THE EFFECTIVE RATE PAYABLE FOR SERVICE RECEIVER, IS THAT

TOTAL VALUE * 50%*14.5%?? CORRECT ME IF AM WRONG ??

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4 Replies

Mayur Kashinpure (Student) (341 Points)
Replied 30 December 2015

Sub contract?
Are you talking about works contract?

Muhammed (Chartered Accountant) (251 Points)
Replied 31 December 2015

yes for works contract

Mayur Kashinpure (Student) (341 Points)
Replied 31 December 2015

Yes it would be Total Value*14.50%*50%.

VIHARI (Articles) (22 Points)
Replied 05 January 2016

I THINK VALUE OF WORKS CONTRACT INCLUDES MATERIALS & LABOURS

CALCULATION OF WORKS CONTRACT

TOTAL VALUE*40%*50%*SERVICETAX RATE

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