Rcm

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Sankar Chakraborty (Querist)

04 November 2014 We are depositing service tax against jobwork bill under RCM

Bill amount 152645.00
Less: 25% 38161.00 ……as abatement
Taxable 114484.00
Deposit of Tax@ 12.36% = 14150.00

We have deposited Rs. 14150.00 to Govt A/c

My question is when making payment to party what amount to deduct from payment of the bill to service provider ?

Bill amount Rs. 152645.00
Less service tax Rs. - 14150.00??
Less Tds -1526.00 being 1% on individual contractor

Please guide about service tax to deduct or NOT ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 November 2014 No service tax to be deducted it is your liability you can claim it as input tax while paying out put service tax. Only TDS to be deducted from the bill.

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Sankar Chakraborty

Sankar Chakraborty (Querist)

04 November 2014 same will be applicable on GTA ?

in GTA 75% abatement is taking and depositing 25% so please confirm

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 November 2014 Same will be applicable on GTA.

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Amol S Joglekar

Amol S Joglekar (Expert)

04 November 2014 basically it depends upon the CONTRACT between the parties. Merely because the DUTY of paying 75% service tax has been cast on to the heads of your company, does not change the CONTRACT between the contractor and contractee.

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