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suresh sharma   02 May 2016

Service tax

In all cases of works contract, I observe that central excise dept gives notice to the service provider for the deficiency in service tax. Notification no 30 of 2012 stipulates that in case of works contract liability of service provider and receiver is half and half I.e. 50%. Why so that only provider is held accountable in all cases.

S P Sharma



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 1 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     15 August 2016

  • If work contract service is provided by any individual, HUF, Firm, AOP to a business entity as body corporate, then 50% of service tax is paid by service provider and 50% is paid by service receiver.
  • In case of Work contact in the nature of support service provided by government or local authority then 100% service tax is paid by service receiver.
  • In all other cases 100% service tax is paid by service provider.

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