MATTER OF WORK CONTRACT

[Rajeev Khulbe]

GOOD EVENING TO ALL EXPERT

WE HIRED A CONTRACTOR FOR WORK CONTRACT ALUMINIUM PARTITION MAKE. I WANT TO KNOW ONLY THAT ON WHICH AMOUNT I WILL PAID SERVICE TAX @ 70%

DETAIL ARE GIVEN BELOW.

MATERIAL VALUE = 75000 PROVIDED BY SERVICE PROVIDER / CONTRACTOR

VAT = 10125

TOTAL BILL = 85125

HE ALSO PROVIDE ANOTHER SEPERATE BILL OF LABOUR CHARGES .

PLZ TOLD ME THAT ON WHICH VALUE I WILL DEPOSIT 70% SERVICE TAX

AI Summary

Service tax on labour charges: Rule 2A inapplicable where separate invoices exist, and partial reverse charge may apply.
Where the contractor issues separate invoices for materials (on which VAT is charged) and for labour, service tax is payable on the labour/service invoice; Rule 2A applies only to single, composite invoices where the service portion is not separately stated, and the actual VAT-paid value of goods is to be treated as the goods portion. A partial reverse charge may apply when the supplier is an individual, HUF or partnership and the recipient is a corporate entity.