clarification relating to payment of service

[Ramakrishnan Seshadri]

Dear Sir,

We have received an invoice from a firm charging 15% (14%+0.5%+0.5%)service tax for the work done by them. The work they have done is welding work in the overhead crane rail . My question is whether i have to pay full tax to him or I have to pay 50% tax to the govt and ask the firm to pay the balance 50% or what is the procedure.

Kindly explain in detail.

Thanks & Regards,

S.Ramakrishnan

AI Summary

Works contract classification determines service tax treatment and shared reverse charge liability between provider and receiver.
Classification of welding work hinges on material supply: if provider supplies materials, the service is a Works Contract Service subject to valuation rules and the reverse charge mechanism, with liability apportioned between provider and receiver; if only pure labour is supplied, it is not a works contract and reverse charge does not apply, so the provider must charge and remit service tax at the full rate.