Partial reverse charge- works contracts
This query is : Resolved
29 April 2013
Hi all, If the Service Provider charges 12.36% st on 30% of the total amount...the effective rate of tax would come upto 3.708%. My doubt is should both the service provider and the service receiver should pay 3.708% each( under works contract reverse charge mechanism 50:50) or should it be just 50% of 3.708%? The calculation is as follows:
Total amount of invoice- 465186
Service Tax 12.36% on 30% of Total amount- Rs.17249.10
My question is what would be the amount of ST payable by the service receiver under reverse charge mechanism?
Thankyou
Total amount of invoice- 465186
Service Tax 12.36% on 30% of Total amount- Rs.17249.10
My question is what would be the amount of ST payable by the service receiver under reverse charge mechanism?
Thankyou
CA Vikas Acharya
(Expert)
29 April 2013
1ST DO 50 50 OF THE TOTAL VALUE
NOW USE THE RULE THAT SR AND SP BOTH CAN TAKE THE ABATEMENT,
HENCE SP = 12.36% OF 30% AND
SR = 12.36% OF 30%
BEACAUSE ABATEMENT IS ON SERVICE AND NOT ONLY FOR SR.
ALSO THE SAME IS SUGGESTED BY CBEC, IN S.TAX EDU GUIDE
NOW USE THE RULE THAT SR AND SP BOTH CAN TAKE THE ABATEMENT,
HENCE SP = 12.36% OF 30% AND
SR = 12.36% OF 30%
BEACAUSE ABATEMENT IS ON SERVICE AND NOT ONLY FOR SR.
ALSO THE SAME IS SUGGESTED BY CBEC, IN S.TAX EDU GUIDE
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- SALARY CAN BE CAPITALIZE
- TDS on purchase of under construction property from a reseller
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- Non filing of I T Returns
- UDIN ISSUE
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
