Renjith.R.s. (Manager-Accounts) (641 Points)
03 May 2017
Mahesh Babu
(CA Final)
(618 Points)
Replied 03 May 2017
In the bill if they, mentioned full ST, then no need to pay any ST under RCM on such bill,
if they have mentioned ST under RCM with notification no., then ST to be paid under RCM for WCT for such bill.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 03 May 2017
service tax abatement 30% service tax to be calcualated at 70% value on which 50% shared by provider and 50% will be shared by receiver
Ajay Kumar Maggidi
(Manager - Finance & Accounts)
(2073 Points)
Replied 03 May 2017
| Originally posted by : sivaram | ||
 |
service tax abatement 30% service tax to be calcualated at 70% value on which 50% shared by provider and 50% will be shared by receiver |  |
agreed!!! RCM applicable if the Service Provider is other than body corporate
And seperately shown of labour value doesnt matter to determine taxable event in case of works contract services
Renjith.R.s.
(Manager-Accounts)
(641 Points)
Replied 04 May 2017
Vendor submiited invoice showing material and labour portion seperately, whether we can pay ST on labour portion only under WCT with abatement. Vendor is prop.ship firm
Ajay Kumar Maggidi
(Manager - Finance & Accounts)
(2073 Points)
Replied 04 May 2017
If Material and Labour value are inseperable then 30% abatement available. In Your case as the Labour Value is seperable no abatement available. On Portion of Labour value you have to 50%( rate 7.5%) of Service tax and vendor(Proprietor) has to pay balance 50% of Tax
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