Compuation of service tax in case of reverse charge
This query is : Resolved
02 March 2011
Case Study;-
Mr. A of USA is giving professional service to Mr.B of India. Contract amount is Rs. 10 Lakhs. Contract is such that Mr. A says that he want Rs. 10 Lakhs in his hand & says that he is not concered with service tax & TDS u/s 195A.
TDS Rate on such income is 20%.
Service Tax Rate is 10.3%.
Both the TDS & Service Tax is to be deposited by Mr.B of India.
How will the TDS & Service Tax will be computed ?
Please help me out?..........
Mr. A of USA is giving professional service to Mr.B of India. Contract amount is Rs. 10 Lakhs. Contract is such that Mr. A says that he want Rs. 10 Lakhs in his hand & says that he is not concered with service tax & TDS u/s 195A.
TDS Rate on such income is 20%.
Service Tax Rate is 10.3%.
Both the TDS & Service Tax is to be deposited by Mr.B of India.
How will the TDS & Service Tax will be computed ?
Please help me out?..........
02 March 2011
you will get in site checkout there...
02 March 2011
oopppsss sry by mistake posted here
03 March 2011
You have to pay Service TAx on gross amount paid to Mr. A of USA on reverse machanism. In case, if u pay TDS also, Service TAx is to be paid on Gross AMount + TDS amount.
04 March 2011
can any one compute the service tax in figures so that i can compare the answer of my.
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