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Service tax amount was deducted from my invoice amount

pradeep (student) (64 Points)

27 October 2016

I have given man power service to X company for Amount:- 100000/-. I have given invoice amount :- 100000/-. (I don't having service tax registration) I not charged service tax on my invoice amount. But X company has deducted service tax amount from Invoice amt :- 100000 -15000 = 85000. They given payment only :- 76,500/- only (8500 - TDS). Please give suggestion what i have to do, to get my service tax amount

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7 Replies

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 27 October 2016

I do not know which services provided by you in this regard but such company cutt service tax in your bill and paid the same and take the benefit in this regard. You should talk with him and settled the matter on mutualy.

Further any another queries in this regard would be highly appreciate.

pradeep (student) (64 Points)
Replied 27 October 2016

I have given 20 workers, to work in there party. Please suggest me, can i ask 15000/- amount from X company. I thinked that i will get 100000/- in that i have to pay 90000/- to workers & my profit is 10000/-.

* i am not having service tax registration, how will they deduct the service tax amount. is it correct accounting.?

By which section they will pay the service tax amount.

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 27 October 2016

Yes, 100 % Service tax liabilty have to pay only who is received the service under Man Power Supply, after paid the duty take the benefit equal amount of duty as credit (Cenvat Credit).

They have adjusted duty amount which was paid by him under RCM. It is wrongfull act, my suggestion in this regard please talk him accordingly.

pradeep (student) (64 Points)
Replied 27 October 2016

Thank you very much sir for your valuable suggestion.

DILIPKUMAR (B.Com) (45 Points)
Replied 28 October 2016

This will be covered under RCM as Supply of Manpower Services. and on this service the liability of service tax payment is of Service Receiver

DILIPKUMAR (B.Com) (45 Points)
Replied 28 October 2016

This will be covered under RCM as Supply of Manpower Services. and on this service the liability of service tax payment is of Service Receiver

DILIPKUMAR (B.Com) (45 Points)
Replied 28 October 2016

Service Receiver (business entity) cannot deduct service tax amount from Service provider's Bill amount. It does not matter whether service provider has Registration number or not. Please discuss this matter with the company's concern person.