Rcm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2013 sir i work for ltd co. one individual (xyz) submitted supply of labour bill without service tax (who is not rregistered) can i deduct service tax from their bill please advise me.....thanks for replay in advance

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 July 2013 Under RCM of service tax, service tax need to be paid by the receiver on the bills received, you cannot deduct from service provider bill and pay(unless he charged service tax in the bill)

And also under 100% RCM services, only service receiver need to be register, not necessary service provider registration

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2013 SIR IF PROVIDER NOT CHARGED SERVICE TAX ON BILL CAN I DEDUCT AS PER RCM
EX.
REPAIRS TO BUILDING WORK BILL AMT - 10000/-
(AS PER RCM ON 60% BILL AMT ST PAID BY RECIVER 50% AMT OF ST)

HOW MUCH OUR ST LIABILITY ON THIS BILL TELL ME,,,,? (BILL AMT 10000/- WITHOUT ST)
PROVIDER NOT REGISTER PERSON.

THANKS IN ADVANCE

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 July 2013 your liability restricts up to 60% of service tax payment on Rs.10000 only

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2013 it mean 60% amt of 10000/-

REPAIRS TO BUILDING 10000
Service Tax @ 60% 742
Total Bill Amount 10742
TDS @ 1% 107
Total Bill Payment 10634

Entry :-
DR CR
REPAIRS BUILDING 10742 -
Service Tax Payable 371
TDS @ 1% 107
XYZ 10263

PLEASE ADVICE IT IS CORRECT WORKING...?
THANKS FOR REPLAY.......

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 July 2013 It seems you are deducting the service tax portion from vendor bill.. please let me know the nvoice structure given by the vendor

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2013 ACTULLY SIR BILL STRUCTURE IS JUST WRITE ON THEIR LETTER HEAD WORK DETAILS AND AMOUNT OF BILL THERE IS NO INFORMATION ABOUT PAN/TAN OTHER REGISTRATION NO (VENDOR IS LIKE CIVIL WORKER)IT'S LIKE NOTE THAT WAS SO SIMPLE

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 July 2013 Then it is fine. your entries are correct

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2013 THANKS SIR,

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