TaxTMI 
TaxTMI 
Works Contract Service
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....orks Contract Service<br> Query (Issue) Started By: - SANDESH SHINDE Dated:- 27-7-2015 Last Reply Date:- 31-7-2015 Service Tax<br>Got 3 Replies<br>Service Tax<br>Dear Sir, Please explain us whether Service provider can charge Service tax 50% i.e 7% on full value and 50% under not any category i.e 40% or 70% of works contract service i.e 7% service tax liability of us as a Service receipent. There....
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....fore please explain us whether he has rightly charged. Pls give us any references regarding this. Thanks & regards. Reply By ganeshan kalyani: The Reply: The service tax liability of service provider on works contract service is 50% and balance 50% is payable by receiver of the service. Let me explain, in case of original works contract service the service portion in value of contract is 40% an....
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....d in case of other than original works is 70%. The service tax shall be calculated as - 40% of value of contract and on that 14% service tax and on 50% is payable by service provider and balance 50% by service receiver. Reply By SANDESH SHINDE: The Reply: Dear Sir, Thanks for your reply, but if the Service provider is not considering any 40% or 70% of works contract service. In case of AMC He i....
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....s just charging 50% of 14% i.e 7% his Service Tax portion and balance 50% of 14% i.e 7% Service tax rate to be paid by us as service receipent.Therefore please explain us whether it is correct. He is not charging any Vat.Thanks & Regards Reply By vasudevan unnikrishnan: The Reply: For AMC tax on 70% of gross value need be paid.Even in case ,where service provider has not charged so,as service rec....
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....ipient, you can follow this valuation and 50% of that only to be paid under reverse charge.payment in cash,not by cenvat. Credit can be taken also.<br> Discussion Forum - Knowledge Sharing ....