Taxation
YAGNESH HASMUKH DAVE
(Querist) 14 February 2013
This query is : Resolved
1) WORKS CONTRACT OF FURNITURE FOR ORIGINAL WORK & OTHER REPAIRING & MAINTAINCE WORK WITH LIMITED COMPANY HOW TO LEVY SERVICE TAX ON GROSS BILL OF RS 10,000/- AS PER NOTIFICATION NO 24/2012 DT 6TH JUNE 2012 SERVICE PROVIDER & SERVICE RECIEVER.
2) THE LTD CO TO WHOM WE ARE PROVIDING SERVICE HAVE TOLD US TO PAY SERVICE TAX 12.36% ON 60% OF THE TOTAL AMOUNT CHARGED FOR WORK CONTRACT ON OLD WORK AND ON ORIGINAL WORK CONTRACT 40%.
3) CURRENTLY WE ARE CHARGING 4.944/% SERVICE TAX AND 50% IS PAYABLE BY SERVICE PROVIDER & 50% BY SERVICE RECIEVER AS PER NOTIFICATION NO 15/2012 SERVICE TAX AND MVAT @ 8% PLEASE REPLY IN DETAILS AND WITH EXAMPLE AS I AM CONFUSED
Sankaranarayanan
(Expert) 14 February 2013
IF finished product of furniture then no need to pay service tax . but as per the VAT the higher rate of tax has to be paid.
As per your statement you pay the service tax at the rate of 4.944% then it is under the works contract. So if either being the head of finished product or works contract. if under the head of works contract you have to pay 4.944 for service and pay the VAT under wroks contract slab.
Raj Kumar Makkad
(Expert) 14 February 2013
I do endorse the advice of Narayanan.
