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Issue ID: 110944
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Thirty Party service Provider are liable for service tax or not.. ?

Date 22 Sep 2016
Replies7 Replies
Views 1301 Views
Asked by
Works contract service: service tax liability split between service receiver and provider under prescribed notification.
Liability for service tax on installation depends on who provides and invoices the service: a third party subcontractor who performs and invoices installation is primarily liable, but if the supplier's invoice bundles goods and installation making the supplier the provider, the transaction may be treated as works contract service with service tax apportioned 50% to the service receiver and 50% to the service provider, and the works contract valuation rules will apply. (AI Summary)

Dear Sir,

My Question is If company have get the order of 20,025,00/- Twenty Lac Two Thousand Five Hundred only

1500 M2 x 1335/- = 2002500/-

Terms & Condition :- Inclusive of Sales Tax & Installation charges (service tax on installation)

Now we issue the Tax/Sale invoice to Buyers inclusive of tax. or installation done by other party which is paid by me. and other party not paid the service tax.

so my question is Can we are liable for service tax or not.

Kindly suggest me.....

Regards

AMIT GUPTA

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