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Rate of deduction towards ST & IT from contractor’s bill

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  • #67206
    Anonymous
    Inactive

    ST & IT has been deducted from contractor’s bill. Is there any rate for these deduction. If so, what is the G.O. No. and date?
    Thanks in anticipation.

    #71475
    Anonymous
    Inactive

    Service Tax has been introduced under Finance Act 1994 of Govt. of India. Service Tax is levied whenever any service is rendered.
    Person liable to pay:- Service Provider either by himself or can recover from service user on actual receipts of payment but not on ‘accrual’ or ‘due’ basis. But nothing prevents an assessee on paying the the tax on service sooner the bill is raised.

    #71481
    Anonymous
    Inactive

    Service Tax may vary depending upon the type of service.
    Let me give you a typical example:
    Say, for First and Final Bill of a work, the bill amount is = Rs. 100000
    Less:-
    Security Deposit @ 10% = Rs. 10000
    Income Tax @ 2.06% = Rs. 2060
    Service Tax @ 2% = Rs. 2000
    Cess @ 1% = Rs. 1000
    Total Deduction @ 15.06% = Rs. 15060
    By Cheque Amount = Rs. 84940

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