In case of works contract, if the service provider is a company, in this case what will be the procedure for tax i.e. who will be liable to pay tax and how much.
jasmine narang (Student CA Final ) (68 Points)
13 February 2015In case of works contract, if the service provider is a company, in this case what will be the procedure for tax i.e. who will be liable to pay tax and how much.
CA Neelam Maheshwari
(internal Auditor)
(497 Points)
Replied 14 February 2015
shubham shukla
(ACCOUNTS MANAGER)
(173 Points)
Replied 14 February 2015
agree with ca neelam..
In the following cases, 100% service tax liability rests with the service provider only if service provider is a corporate entity:-
i. Renting of motor vehicle
ii. Manpower services & security Services
iii. Works contract
In the above cases, service recipient will pay nothing under reverse charge mechanism.
Regards,
Shubham
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