Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Work contract tax

Abinash Mishra (Others) (60 Points)

09 January 2014

Suppose a contractor outside orissa got a contract from a company in orissa which involves supply & service,then what service tax rate is applicable to him,whether composite tax rate as per orissa work contract tax is applicable for him,if not then what are the procedure that he is elegible for composite tax under orissa work contract law.

Reply
Follow
Share

2 Replies

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 10 January 2014

In service tax, there is no difference in rate or treatment for inter-state or intra-state provider and recipient. So, whether the service provider is from outside odisha or from within odisha has no relevance.

Now, if the suppier is providing materials and service, it falls under Works Contract u/s 65B(54) for service tax. It has no bearing on the OVAT laws of the state. For effective rate purpose, kinldy refer Rule 2A of the Service Tax (Determination of Value) Rules, 2006. Kindly also note that if the service provider (SP) is an individual/proprietorship/partnership firm or HUF or AOP and the service recipient (SR) is a body corporate, then reverse charge is applicabe and only 50% of the tax is payable by SP and 50% by SR.

2 Like