Query on invoice value_service tax reverse charge mechanism

This query is : Resolved

Gireesh Hegde (Querist)
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04 March 2013 Dear All,

I had a confusion about raising Invoice with regard to Services provided (Reverse Charge Mechanism). Could you please help me to clarify the issue?

Cab Hiring Charges Value Rs.10000.00
Service Tax @ 12.36% is Rs.1236.00
Total Value of The Invoice is Rs.11236.00
Out of the above 60% ( Rs.741.60) of the Service Tax Payable by the Service Provider and Balance of 40% (Rs.494.40) Service Tax Payable by Service Recipient.Now my question is
• Whether we have to raise Invoice for Rs.11236/- or only (Rs.10000+Service Tax Payable on Service Provider Part of Rs.741.60/-) Rs.10741.60/-?
• Is there any notes / remarks needs to be mentioned in the invoice?

Thanks.
Gireesh

CA Parul Saxena

CA Parul Saxena (Expert)
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04 March 2013 Invoice is to be raised for Rs.10741.60/-.....In the invoice you may mention that 40% of the service tax is to be paid by service receiver for such and such amount...

Gireesh Hegde

Gireesh Hegde (Querist)
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04 March 2013 But for deducting the TDS amount whether we have to consider Rs.11236 or Rs.10741.60?

CA Parul Saxena

CA Parul Saxena (Expert)
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04 March 2013 TDS is to be deducted on 10741.60/-

Gireesh Hegde

Gireesh Hegde (Querist)
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04 March 2013 Thanks CA Prarul. Can i have circular / details about this (if you have) to my email from you?my email id hegdegg.86@gmail.com

CA Parul Saxena

CA Parul Saxena (Expert)
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04 March 2013 Mr.Gireesh the income tax department has not yet issued any circular related particular aspect so far....but the logic behind my reply service receiver will deduct TDS on the amount which is to be paid to the service provider....and the portion of service tax (in your case 40%) which is not supposed to pay to the service provider is not liable for TDS......

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