Invoice for works contract

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This query is : Resolved

Manish (Querist)

04 February 2016 I HAVE WORKS CONTRACT OF RS.100000/- WITH 40% TAXABLE AND 60% ABETMENT IN SERVICE TAX. ALSO PAID VAT LUMPSUM AT 0.6% RATE, PLEASE PROVIDE CALCULATION OF VAT AND SERVICE TAX OR PREPARE MY INVOICE WITH THIS AMOUNT AND DETAIL I HAVE TO PRODUCE TO MY CLIENT.

C.A. HIREN

C.A. HIREN (Expert)

06 February 2016 First of all you have not cleared whether reverse charge is applicable or not in your case.
Kindly confirm so that advise can be given accordingly. If reverse charge is there then In
invoice, the service provider must charge service tax only to the extent for which
he is liable for service tax. For part of service tax which is payable by service
receiver under reverse charge mechanism, a note may be inserted in the invoice
indicating that “balance ........% of service tax would be payable by service receiver
directly to the government”. Further, the service provider may show total amount
of service tax on such service but will charge only ........% of total service tax and
may indicate the above description.

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