Reverse charge

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2014 Dear Sir,

A pvt. ltd.co. receiving security services and all service tax i.e. 12.36% charged by the service provider but under reverse charge the said co. also liable to pay service tax.

So, please tell me in detail about this problem.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

08 January 2014 if you are receiving services from company ,reversecharge not applicable and they have to collect full 12.36% of service tax from you and you dont need to pay any from your pocket to govt.
.
.
if you are received services from other than company reversecharge applicable and you have to pay 25% of servicetax from your pocket directly to government and balance 75% of service tax required to pay to service provider
.
.
so if you received service from other than company but claimed full service tax in his invoice
.
.
even though you have paid full service tax to your service provider dept may demand you to pay again as you are primarily liable here
.
.
so pay to service provider only 75% of service tax and for the balance 25% of service tax dont pay,,better ask them to send a proper bill claiming 75% of service tax only
.
.
and you pay 25% of service tax from your pocket

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now