Chetan Patel (Individual) 28 November 2012
My Question is In case of Work Contract where both materials and labour charges are involved and both are not separable how service tax will be calculated?
Another Question is in a Similar situation if the services are provided to a limited company, whose liability would be to deduct and pay service tax?
Please also refer the provisions related.
NARAYANAN.P.POTTY (ADVOCATE) 28 November 2012
After the introduction of Negative list ,with effect from 01-07-2012 in a works contract if the material portion can not be separated ,service portion is deemed to be 40% of the total value.Service Tax @12.36% have to pay on 40% of the Value of Bill.When an individual or Partnership firm provide service to Corporate ,50% of the Service tax liability should be shared by Service recepient Corporate as per Reverse charge Mechanisam.
Chetan Patel (Individual) 30 November 2012
Thank you Sir for your reply. Your answer helped me to solve my problem.
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