Accounting in reverse charge machanism
This query is : Resolved
CA Gaurav Ajit Potdar
(Querist)
08 June 2013
1 of our client receive security service which is covered under reverse charge machanism the billing of which is as under
Security Service Rs 100
ST 3.09
ST to be born by
Service receiver 9.27
Total bill Amt
Payable 103.09
now how will we account the same what is the amt of expenditure that will be shown in the p&l is it 103.09 or 112.36
we donot take ST credit
and at what amt TDS is to be deducted on 103.09 or 112.36
Security Service Rs 100
ST 3.09
ST to be born by
Service receiver 9.27
Total bill Amt
Payable 103.09
now how will we account the same what is the amt of expenditure that will be shown in the p&l is it 103.09 or 112.36
we donot take ST credit
and at what amt TDS is to be deducted on 103.09 or 112.36
CMA Ramesh Krishnan
(Expert)
08 June 2013
Service provider where covered under reverse charge method need to raise the invoice with service tax of their portion only.
In case service receiver, if not taking cenvat credit then need to account total amount as expenses only so expenses Rs.112.36.
But in TDS point, tds apply on only the bill Amount of Rs. 103.09
Service provider where covered under reverse charge method need to raise the invoice with service tax of their portion only.
In case service receiver, if not taking cenvat credit then need to account total amount as expenses only so expenses Rs.112.36.
But in TDS point, tds apply on only the bill Amount of Rs. 103.09
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Section 269ST applicability for capital introduced by partner to his partnership firm
- ETDS return q4 25-26
- Capital Gains Tax on Inherited Mutual Fund
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
