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TMI BlogService tax For installationX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear All, We have some Service Providers who are doing the work of Installation, Commissioning, Erection, for machinery, - They are Individuals not having the Service tax registration - Charging the bill in the name of Commissioning, Rewinding works like that and the amount of the work -This was an first time installation works for machinery and we have booked in the asset account For the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve points shall we need to pay the service tax on behalf of the vendor, (If yes pls provide clarification on which head to be paid and the percentage) Kindly suggest,, Read more at: http://www.caclubindia.com/# - Reply By Ganeshan Kalyani - The Reply = If the described work has only service portion then there is no need to pay service tax by the recipient of service. If otherwise then under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reverse charge mechanism the recipient of service is liable to pay the tax. - Reply By Ganeshan Kalyani - The Reply = For reverse charge applicability, The recipient should be body corporate and the provider should be individual, HUF, firm. - Reply By CA Venkata prasad Pasupuleti - The Reply = Endorse with views expressed by Ganesh ji. If the scope of work is only for labour component and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all required material for the execution of work is supplied by your company. then it is not liable otherwise (i.e. goods/materials also in vendor scope) then it may be liable under reverse charge on 50% portion of tax. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = If you receive manpower from the service providers then only you are liable to pay service tax under reverse charge mechanism. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Ganeshan Kalyani - The Reply = Further to my view, the description on the face of the invoice is very essential. The words like 'installation, commissioning , erection etc. Are included in the definition of works contract service. Also it is understood that for installation, commissioning or erection job material is required along with Labour. So it is to be ensured to get the bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with clear description on the face of the invoice. You may write as Labour charges for installation, commissioning, erection work. - Reply By YAGAY AND SUN - The Reply = Service tax on Pure labour work will the child of service provider and if such services are with material which comes under the provision of Notification No. 30/2012-ST , then, ST would be on reverse charge. - Reply By Ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neshan Kalyani - The Reply = The accounting code for 'works contract service ' is Services provided in relation to execution of a works contract. 00440410 - Reply By Ganeshan Kalyani - The Reply = The service tax rate is as below: Original works contract service- 3% (including ST+SBC+KKC), being fifty percent payable by receiver of service. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Other than original works contract service - 5.25% (.... ....) - Service tax For installation - Query Started By: - Balamurugan R Dated:- 30-9-2016 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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