Reverse charge mechanism
This query is : Resolved
18 April 2015
Sir, i want to how to calculate s.tax under RCM
and who comes under RCM from service receiver side.
RCM S.tax bill eg.( in cab service )
service value .... 40000
s. tax @12.36%on 60%of 50%...... 988
total bill amt. ....40988
is this correct under RCM
we r cab firm
18 April 2015
It is s. tax @12.36% on 40% value has to be paid by service receiver. No service tax payable by service provider.
18 April 2015
sir , my calculation is right or wrong ,i am calculating tax on non abated value i.e 60% of value and half the s.tax under RCM means if s.tax 400 then i take 200
19 April 2015
Under RCM, for non abated value, service tax has to be paid on 40% value.
Half the service tax is payable only on works contract.
Half the service tax is payable only on works contract.
19 April 2015
in pvt ltd co we also calculate s.tax on taxable40% and in firm u say also taxable 40% but in firm with abatement tax payable by service provider nil and without abatement tax liability 60%.
sir can u solve this query with calculation .
sir can u solve this query with calculation .
19 April 2015
Firm with abatement nil for service provider.
19 April 2015
then bill will be service value...400000
s.tax....nil
total....400000
is this correct ?
please give me example like above about how to charge s.tax on bill
s.tax....nil
total....400000
is this correct ?
please give me example like above about how to charge s.tax on bill
19 April 2015
Yes it is correct, the 100% service tax will be paid by service receiver.
19 April 2015
Thanks sir
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