TaxTMI 
TaxTMI 
WORKS CONTRACT
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....ORKS CONTRACT<br> Query (Issue) Started By: - SNEHAL SHAH Dated:- 2-12-2013 Last Reply Date:- 10-12-2013 Service Tax<br>Got 5 Replies<br>Service Tax<br>Dear sir, We are Manufacturing of Chemical Product . Our new Unit construction continue ( New construction ) at our another land . There is a two party providing construction services ( One main another sub contractor ) : 1) ABC CONSULTING ENGINE....
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....ERS - HAVING A CONSULTING ENGG SERVICE TAX REG NO.( Main ) 2) XYZ ENGINEERS & CONTRACTORS - HAVING A CONSTRUCTION SERVICE REG NO. ( Sub cont ) Both are Propritoer firm . ABC Issue Invoice with atteched invoice details [ Invoice issued by XYZ ENGG with Service tax charges Rs.100 ( construction cost ) X 12.36 percent = Rs.12.36 - Service tax ] . Is it right way and right percentage of service tax....
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.... as per above detials ? Please guide us . Thanks and regards, SNEHAL SHAH Reply By A Wilson: The Reply: Dear Sir, I have some clarification in your Query. * Your Company Status - Partnership Firm or Private Ltd or Ltd other, please specify? Thanks & Regards, A.Wilson Reply By SNEHAL SHAH: The Reply: Sir, Private Limited firm . Thanks . SNEHAL SHAH Reply By A Wilson: The Reply: De....
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....ar Sir, Invoice issued by the ABC Consulting Engineers with details submitted by the Sub Contractor is not a problem. That Invoice can be accepted. But In the case of Work Contract Service, 50 percent of Service tax Liability(50 percent on 12.36 percent ) on Taxable Service should be discharged by your Company(Pvt Ltd) under Reverse Charge. Balance 50 percent may be collected by the ABC Consulti....
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....ng Engineers(Proprietorship) . You may refer the Reverse Charge Notification No. 30/2012-Service Tax dated 20.06.2012 effective from 1st July 2012 Thanks & Regards A.Wilson Reply By SNEHAL SHAH: The Reply: Dear sir, Exemple No. 1 : Contractory submit Bill : Basic Amount : Rs.100 Service tax : 6.18 ( 50 percent of Rs.12.36 ) Total Bill Amount Rs.116.18 Exemple No. 2 : Contractory submit....
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.... Bill : Basic Amount : Rs.100 Service tax on 40 percent ( new construciton ) i.e. Rs.40 X 12.36 percent = 4.944 : 2.472 ( 50 percent of Rs.4.944 ) Total Bill Amount Rs.102.472 Which Exemple is right . Please give your expert advise . thanks and regards, SNEHAL SHAH Reply By A Wilson: The Reply: Dear Sir, In the case of New Construction (and unable to segregate the Materials & Labour Value....
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....), the taxable value of service is 40 percent of the Total Value. So your Example No.2 is correct. Thanks & Regards A.Wilson<br> Discussion Forum - Knowledge Sharing ....