service tax on building construction

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  1. Gurudutt

    Gurudutt New Member

    Hi,

    Suppose a pvt ltd company say X got its building constructed by a contractor for Rs 12 lacs( material + labour) . The contractor doesn't have a ST registration and hence doesn't charge ST.

    Can X be held liable for not paying ST??
     
  2. maheshkumar

    maheshkumar New Member

    THE VIEWS GIVEN BY UDAYA ARE NOT CORRECT, REVERSE CHARGE MECHANISM IS ONLY APPLICABLE WHEN THE PROVIDER OF SERVICE IS AN INDIVIDUAL, HUF, PARTNERSHIP FIRM WHETHER REGISTERED OR NOT AND INCLUDING AOP.

    THE SERVICE HAS TO BE PROVIDED TO A BUSINESS ENTITY REGISTERED AS A BODY CORPORATE(RECIPIENT OF SERVICE)

    BUSINESS ENTITY IS DEFINED IN SECTION 65B(17) OF THE ACT.

    HENCE THE STATUS OF PROVIDER OF SERVICE MUST BE LOOKED INTO WHILE CONSIDERING NOTIFICATION 30/2012. {[A] (v)}

    THEREFORE AS PER TH ABOVE QUERY IT DEPENDS ON THE STATUS OF THE PROVIDER OF SERVICE.
     
  3. Dear Mahesh Kumar,

    I agree with you that the status of service provider is to be considered. In this case, the contractor, assuming that he is an individual, because he doesn't have ST Number, I have given that answer.
     
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