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
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
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- NRI starting business in India
- ITDS U/S.194T of Firm
- ADVANCE PAYMENT OF ADVOCATE
- Non-Compliance documents have not been submitted by the contractors debited
- Filling ITR - U
- Eway bill not cancelled within 24 hous what can be due
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
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
