Partial reverse charge mechanism

Save Share

This query is : Resolved

ATUL GAUR (Querist)

28 October 2012 Dear Sir, anyone can please clarify the applicability of service tax rate & partial reverse charge mechanism on security & manpower supply for the FY 2011-12?

Regards
Atul Gaur

Arun Kumar Singh

Arun Kumar Singh (Expert)

28 October 2012 Any services if you have to paid service tax on invoice basis after that payment will not be received in three month then you can reverse the credit under rule 6(3) of service tax rule.

CA Sahil Singla..

CA Sahil Singla.. (Expert)

28 October 2012 Service Tax rate for F.Y. 2011-12 is 10.30%.

As per point of taxation rules, Service tax becomes due when Invoice is issued or payment is received whichever is earlier.
Also, Invoice should have been raised within 30 days of service completion.
The partial Reverse charge mechanism came into effect from 01/07/2012. For services rendered in F.Y. 2011-12, the point of taxation can never be on or after 01/07/2012.
So, the partial reverse charge is not applicable in your case.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now