Partial reverse charge

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This query is : Resolved

Kanishka Roy (Querist)

17 February 2015 In case of Partial Reverse Charge Mechanism, does the Service Provider need to include the tax payable by the Service Receiver in his Tax Invoice.

CA Anjana Grover

CA Anjana Grover (Expert)

17 February 2015
Hi Krishna,
Yes , the amount of tax payable by receiver of services must be mentioned on Tax Invoice.
Its one of the Mandatory requirements.

Regards

Harshal Fifadra

Harshal Fifadra (Expert)

17 February 2015 If the amount of tax is not mentioned on the invoice then also service recipient is liable to discharge its service tax liability .

Kanishka Roy

Kanishka Roy (Querist)

18 February 2015 hello Anjana Madam,

If I am not wrong, Rule 4A of STR 1994 says "the service tax payable theron". It does not specifically say that the tax payable by service receiver has to be included in the invoice.

Regards

Kanishka

CA Parveen Kumar

CA Parveen Kumar (Expert)

18 February 2015 As per Rule 4A of STR, 1994, the service provider should mention the Service Tax payable thereon on such service.

Rule 4 nowhere mention to indicate the service receiver or service provider portion of tax.

But for precaution and better compliance it is good practice to mention the Service Receiver portion of Service Tax on invoice.

Kanishka Roy

Kanishka Roy (Querist)

19 February 2015 Thanx to all for helping out!!!

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