Reverse charge of service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 October 2012
In case of reverse charge where the service reciever shall pay service tax. Is the service tax to be calculated on gross amount+TDS or only on the gross amount where the TDS is also borne by the service reciever??
Eg. Rs. 10,000 gross amount
Rs. 2500 TDS
Will service tax be calculated on 12500 or only 10,000???
Eg. Rs. 10,000 gross amount
Rs. 2500 TDS
Will service tax be calculated on 12500 or only 10,000???
12 October 2012
ques is not clear how TDS is added in bill ???????
If bill amt is 10000+2500=12500 then ST liability is on 12500
If bill amt is 10000+2500=12500 then ST liability is on 12500
18 October 2012
The rule is that to effect TDS, it is the Gross Amount Charged on which tds rate to be applied. In the RCM case, the service provider is not entitled to charge ST( to the extent specified in rules), hence the ST to be paid by Service Recipient does not form part of Gross Amount charged by Service Provider and therefore, you are not required to consider TDS on ST amount.
In other words, deduct tax at source at the rate specified only the Billed Amount( which does not contain ST here)
Hope the matter is clear.
In other words, deduct tax at source at the rate specified only the Billed Amount( which does not contain ST here)
Hope the matter is clear.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- ITR 2 Short Term gain & Long term gain
- Showing Gift from relative in ITR for this year
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- ITR validation error - Balance sheet is not filled
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
