Reverse charge
This query is : Resolved
RAJESH GUPTA
(Querist)
21 July 2014
BILL OF ADVOCATE RECEIVED ON JUNE 2014. IS SERVICE TAX PAYBLE IN JULY 2014 IN CASE OF COMAPNAY.
CA Parul Saxena
(Expert)
21 July 2014
yes service tax is to be paid in the month of July 2014.
Ganeshbabu K
(Expert)
21 July 2014
Let me tell you point of taxation for reversecharge is as below
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Service tax is payable by service receiver when actual payment is made to service provider and not on receipt of Invoice from service provider. However, if payment is not made to service provider within 6 months, service tax is anyway payable. Interest is also payable.
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So if you made payment to advocate with in 6 months date of payment made to him is point of taxation and you should deposit service tax with in 6th of following month in which you have paid
.
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Service tax is payable by service receiver when actual payment is made to service provider and not on receipt of Invoice from service provider. However, if payment is not made to service provider within 6 months, service tax is anyway payable. Interest is also payable.
.
.
So if you made payment to advocate with in 6 months date of payment made to him is point of taxation and you should deposit service tax with in 6th of following month in which you have paid
Ganeshbabu K
(Expert)
21 July 2014
Related Budget updates for you:
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Provision w.e.f from 1.9.2014
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1)Where entire service tax is payable by service receiver, he can take Cenvat credit on basis of GAR-7 challan after making payment of service tax.
2)He can take Cenvat credit whether or not he make payment of value of invoice to service provider [first provisio to rule 4(7) of Cenvat Credit Rules, inserted w.e.f. 1-9-2014].
3)The credit should be taken within six months from date of payment by GAR-7 challan/internet – sixth provisio to rule 4(7) of Cenvat Credit Rules, inserted w.e.f. 1-9-2014.
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4)Cenvat credit lapses if not taken within six months from date of duty paying document:-
As per proviso to rule 4(1) and sixth proviso to rule 4(7) of Cenvat Credit Rules (inserted w.e.f. 1-9-2014), Cenvat credit mu be taken within six months from date of issue of any duty paying document (invoice, bill of entry, GAR-7 challan etc. as applicable).
.
.
Provision w.e.f from 1.9.2014
.
1)Where entire service tax is payable by service receiver, he can take Cenvat credit on basis of GAR-7 challan after making payment of service tax.
2)He can take Cenvat credit whether or not he make payment of value of invoice to service provider [first provisio to rule 4(7) of Cenvat Credit Rules, inserted w.e.f. 1-9-2014].
3)The credit should be taken within six months from date of payment by GAR-7 challan/internet – sixth provisio to rule 4(7) of Cenvat Credit Rules, inserted w.e.f. 1-9-2014.
.
4)Cenvat credit lapses if not taken within six months from date of duty paying document:-
As per proviso to rule 4(1) and sixth proviso to rule 4(7) of Cenvat Credit Rules (inserted w.e.f. 1-9-2014), Cenvat credit mu be taken within six months from date of issue of any duty paying document (invoice, bill of entry, GAR-7 challan etc. as applicable).
RAJESH GUPTA
(Querist)
21 July 2014
DOES SITTING FEE PAID TO DIRECTORS COME UNDER R/CHARGE
RAJESH GUPTA
(Querist)
21 July 2014
DOES SITTING FEE PAID TO DIRECTORS COME UNDER R/CHARGE
RAJESH GUPTA
(Querist)
21 July 2014
DOES SITTING FEE PAID TO DIRECTORS COME UNDER R/CHARGE
Ganeshbabu K
(Expert)
21 July 2014
Yes Reversecharge applicable
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As per rule 2(1)(d)(EE) of Service Tax Rules inserted w.e.f. 7-8-2012 and Notification No. 30/2012-ST dated 20-6-2012 amended w.e.f. 7-8-2012, company receiving the services of directors is liable to pay service tax under reverse charge mechanism.
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As per rule 2(1)(d)(EE) of Service Tax Rules inserted w.e.f. 7-8-2012 and Notification No. 30/2012-ST dated 20-6-2012 amended w.e.f. 7-8-2012, company receiving the services of directors is liable to pay service tax under reverse charge mechanism.
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