Reverse charge mechanism

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2013 Dear Sir,

We are the man power supplier.... But i dont have any knowledge about Reverse Charge Mechanism.... I have been charging @12.36% till now....
My questions are:

1. Should i change my Tax Rate to 3.06%?

2. I am providing services to Individual also, They dont have Service Tax Code... Am i liable to charge them full 12.36% ?

3. If i collect 3.06%, My input credit is more then Output Collection.. How can i adjust ?

Ganeshbabu K

Ganeshbabu K (Expert)

29 August 2013 What is the status of yours,,

See

Service provider is Individual, HUF, proprietary or partnership firm, AOP located in taxable territory

And

Service Receiver is Business entity registered as body corporate located in the taxable territory,,

So if above condition satisfies reversecharge applicable and charge as per reversecharge rates
.
.
25% on 12.36
.
.
Yes,,you need to bill only for 3.06,,even though you charge 12.36%,,if service receiver is llP or company,, they will pay only 3.06%,,
..
.as per reversecharge

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