When is Normal Charge Applicable in Case of Works Contract?
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Normal Charge is Applicable when
- Service Provider is a Company(in all cases)
- Service Provider is Non Company and Service Receiver is Non Company
In these cases,Contractor who is the Service Provider pays Service tax
What is Rate of Tax Applicable in this case?
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In these cases,Service Provider pays Service tax @
6% (15%*40%) in case of Original Contract
10.5% (15%*70%) in case of Other Contract
When is Partial Reverse Charge Applicable in case of Works Contract?
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Partial Reverse Charge is applicable in case of
Service Provider is Non Company and Service Receiver is Company
|
Name of Service |
% paid by Service Provider |
% Paid by Service receiver |
|
Works Contract Service |
50% Individual HUF Partnership firm AOP |
50% Body Corporate |
Hence,both Service Provider and Receiver pays 50% Service tax in this case
What is Rate of Service tax in case of Partial Reverse Charge
View answer
In this case,both Provider and Receiver pays half Service tax
|
Type of Contract |
Rates Applicable |
Paid by Service Provider |
Paid by Service Receiver |
|
Original |
6% (15*40%) |
3% |
3% |
|
Other |
10.5% (15*70%) |
5.25% |
5.25% |