Computation of reverse charges mechanism

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2014 Dear Friend,

Kindly let me know that service tax liability of service receiver and provider, If we have received total bill amount of Rs.1,00,000/- from security agencies.

Thanks & Regards,
Murugan B

CA.Vinita Gupta

CA.Vinita Gupta (Expert)

26 June 2014 Is the Service Provider a Company or Proprietorship/ partnership concern?

Is the Service Receiver a Company? or what

CA.Vinita Gupta

CA.Vinita Gupta (Expert)

26 June 2014 If the Service Provider is an Individual, HUf firm or AOP and the Service Receiver is a Company then 25%of Service Tax is payable by the Provider and 75% of Service tax is payable by the Service Receiver.

Rupesh Jain

Rupesh Jain (Expert)

26 June 2014 if service provider is pvt ltd /ltd then they charge full service tax your liability in NIL

other wise service provider charge 3.09% you have to pay 9.27% as reverse charge on bill amount. and take credit of the same.

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2014 Kindly let me know that service tax on 1,00,000 or which is included in 1,00,000 itself?

Ganeshbabu K

Ganeshbabu K (Expert)

30 June 2014 1)If service receiver is Business entity registered as body corporate and service provider is individual,partnership,huf service receiver have to pay 75% of service tax(12.36)..
.
.
i.e,Service tax have to be paid is
.
75% of 12.36=9.27% on 1 lakh=9270
.
You have to pay 9270 directly to department
.
.
2)You dont bother about service receiver liability,
.
if his turnover exceeds 10 lakhs in any previous financial years he have to collect 3.09% of service tax from you and have to pay to department other wise he can claim SSI exemption

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