Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Reverse charge mechanism

Save Share

This query is : Resolved

yateenvyas (Querist)
Follow

16 July 2012 What will be the point of taxation in new reverse charge mechanism services like manower supply if invoice date is before 30 june an payment in month of july
IF servcie provider is under threshold limit of 10 lakh then service provicder have to fulfill his liability to pay tax or not.

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

16 July 2012 Service provider need not pay service tax under reverse charge if he is under threshold limit, but service receiver has to pay his share of 75%. Regarding point of taxation rules, if the payment is received/paid only in July 12, even june dated invoices have to be paid in July. Under reverse charge, the receiver can avail cenvat benefit based on the payment challan.

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

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!