MANOJ (SERVICE) (56 Points)
22 March 2013Dear Expert,
X company register with the service tax for GTA service also pay service tax regular basis as per the reverse charge system. Now compay has recived contract for professional service from Y contract value Rs. 8 Lac. As per agreement invoice has been raised without charging service tax for the financial year 2012-13.
Kindly advise what is the service tax liability for Rs. 8 Lac to the Company X.
Asif Khan
(Taxation executive)
(410 Points)
Replied 22 March 2013
There are many possible answers in this case. But there are some questions which I would like to ask
1. Is X a Company or not.
2. If X is a Company then is the Turnover of Services is below or above 10 Lakhs in 2012-13
3. What is the turnover of GTA services provided
MANOJ
(SERVICE)
(56 Points)
Replied 22 March 2013
X is a Manufacturing company and turnover is above 10 lacs for selling of mnufactured goods for FY 2012-13
Asif Khan
(Taxation executive)
(410 Points)
Replied 22 March 2013
What is the turnover og Gta Services provided by X..
Asif Khan
(Taxation executive)
(410 Points)
Replied 22 March 2013
In this case X company was liable to charge service tax to Y on professional services of Rs 8 lacs provided. If X has not charged Service tax to Y then in this case X would have to pay Service tax on Reverse calculation on Gross Amount Recieved .i.e Service Tax payable would be Rs 800000x12.36/112.36= 88002/-.
Hope it is clear
MANOJ
(SERVICE)
(56 Points)
Replied 22 March 2013
But if it is below 10 lacs for the specific service and GTA service is applicale for reverse charge system only. X company can't provide any service.
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