Query regarding invoice amount to be issued by vendor

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This query is : Resolved

Sachin (Querist)
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23 July 2013 Hi Experts,

Had a query regarding RCM Invoice to be issued by vendor.

I am a company and an Individual had done some work of which he had to raise a bill.
This is covered under Reverse charge, 75 % I had to pay to service tax authority and 25 % balance to vendor.

Of how much amount the vendor needs to raise the bill

Ex, Work done 10000
ST (RCM @ 75%) 927 ST auth. amt
ST( Accrual @ 25%) 309
Total ST 1236

Of course TDS will be deducted on 11236

So what will be the bill amt here in here ?

is it 10309 or 11236.

Will raising of 10309 cause any issue in reconciliation of challan while filing return

What is the process of reconciliation of ST return by the vendor in such cases if 10309 is issued.

Thanks

Sachin

Ganeshbabu K

Ganeshbabu K (Expert)
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24 July 2013 Billing by service provider under reverse charge:-

1)Service provider should charge only his part of service tax

2)Service receiver to pay service tax of his part by GAR-7 challan

3)Service receiver liable for only his part and not entire amount, even if service provider does not charge his portion of service tax.

So as per this service provider bill should be as below.

WORK DONE 100
service tax 3.09(25%*12.36)

total 103.09

tds is applicable on 103.09 and not on 112.36

TDS applicable only on amount paid to him

and please let me know further queries on billing as i am unable to understand last few lines of your query

Thanks & regards
Ganesh babu k

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