Applicability of Service Tax.

[Vikas Aggarwal]

Dear Sir,

I have a doubt in following cases, it is requested you please solve my query.

1. Service tax applicability on Sub contractor. A plumber (sub contractor, he is an individual) provide service to contractor and raised bill of Rs. 20 lakh, whether he is liable to pay service tax if not who is liable to pay.

2. Computer AMC services provided by an individual service provider to Company and charged Rs. 20000/- PM, The above AMC includes only labour portion (for any material they raised separate bill), in this situation company can liable to pay Service tax on AMC amount of Rs. 20000/- under reverse Charges.

3. Job work/AMC/Repair & Maintenance work without use of material (means only labour portion) covered under defination of Work Contract, if not than the above service are liable for service tax.

4.  Under reverse charge the POT Rule was date of payment when payment made within 6 month, otherwise date of issue of invoice, if a service provider issued bill on August end & the service recipient (company) not pay the bill within 6 month, what is the POT under this situation. If company file service tax return for the period April to Sept. without considered august bill. Can company revised service tax return.



With Best regards,
CA VIKAS AGGARWAL
+91-8800549233

AI Summary

Reverse charge on services requires the service recipient to discharge tax when the provider is an individual under threshold.
Subcontractors performing works contract services may be exempt if the principal contract service is exempt; otherwise service tax applies. Under the partial reverse charge mechanism the service recipient must discharge tax where the individual provider is below threshold and materials are involved, and timing under Point of Taxation rules depends on payment within the prescribed period or else the invoice date.