Works Contract Service, Service Tax

[Amit Jadhav]

I am working with one of the pvt. sugar mill. if we are receiving works contract service then the liabillity to pay 50% service tax is on us. i want to know .....

1) if the party is not having the service tax registration then what is the proceedure to pay the service tax.

2) if the material value & service value is not determinable then what is the proceedure for service tax payment.

 

Posts / Replies

[Pradeep Khatri]

If the service provider is Individual, LLp, HUF or Association of persons then under Partial Reverse charge  Mechanism, you are liable to pay the tax.  If the service provider has not crossed the threshold limit, even then, you are liable to pay 50%.

If the material value and service value is not determinable then you may pay either 4.8% plus cess or 12.36% on the 40% of the contract value.