Payment to non Resident in Case of Reverse Charge
This query is : Resolved
CA.CS.V.Viswanathan
(Querist)
28 April 2009
When Payment is made to non resident for Receiving service service receiver has to pay service tax . For the calculation of Service tax to be paid Does TDS u/s 195 Deducted and paid be taken into account?
The service tax payable should be calulated on 90% value(That is 10% TDS) or 100% bill value??
The service tax payable should be calulated on 90% value(That is 10% TDS) or 100% bill value??
VIVEK BINDAL
(Expert)
28 April 2009
It is expressly stipulated that where the service receiver is liable to pay service tax, he shall be treated as he is the person liable for paying the service tax.i.e service receiver shall be treated as service provider. Therefore, S.Tax shall be calculated on the gross amount which the service receiver has to pay to the service provider irrespective of the TDS. Therefore TDS shall not be deducted out of the gross amount.
Rajesh Kumar
(Expert)
29 April 2009
100% of invoice value
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