Reverse charge mechanism
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 July 2015
There is a work contract service (maintenance service of good) by service provider to service receiver in which reverse charge mechanism applicable?
service provider raises bill of rs 25000 to service receiver
service provider is exempted from service tax due to below the threshold limit.
now service receiver how to calculate and pay to service provider
option 1
25000*70% = 17500*14%=2450*50%=1225
pay to service provider 25000-1225=23775
pay to govt 1225
option 2
pay to service provider 25000
pay to govt 1225
which option is correct?
if nothing is mentioned in contract for rate to inclusive or exclusive then which option is correct?
service provider raises bill of rs 25000 to service receiver
service provider is exempted from service tax due to below the threshold limit.
now service receiver how to calculate and pay to service provider
option 1
25000*70% = 17500*14%=2450*50%=1225
pay to service provider 25000-1225=23775
pay to govt 1225
option 2
pay to service provider 25000
pay to govt 1225
which option is correct?
if nothing is mentioned in contract for rate to inclusive or exclusive then which option is correct?
04 July 2015
Option 2 is correct. If nothing is mentioned about service tax you can't deduct.
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