Reverse charges

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Manoj Kumar (Querist)
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25 August 2012 If a service provider is enjoying small scale benefit and does not charge service tax in bills in such a case what is the responsibility of Service Receiver under Service Tax regime of Reverse Charges mechanism.

CA Suresh Jain

CA Suresh Jain (Expert)
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26 August 2012 The recipient of service has to pay service tax irrespective of the fact that service provider is exempted from payment of service tax

Manoj Kumar

Manoj Kumar (Querist)
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27 August 2012 Dear Sir,
Whether the receiver of services has to pay tax if the provider does not charge Service Tax in bills. If yes then please confirm how.
For Example an advocate has given bill for Rs.20000/- for his services to an organisation and he is enjoing the benifit of small service provider hence has not charged any Service Tax in the bill Now please confirm in this case what will be the resposibility of the service receiver.

sri rama krishna mallela

sri rama krishna mallela (Expert)
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27 August 2012 Dear Manoj,

There is no nead the the service provider has to mention the service tax in his bill in the case of reverse charge mechanism.

On the total bill amount you have to pay service tax. In case of above example you have to pay service tax on Rs.20000.00/- irrespective of the service provider is covered under small scale service provider.

You have to pay this service tax on or before sixth of the month next to the month in which you will make payment in case of e payment other wise it is fifth of the next month.

Manoj Kumar

Manoj Kumar (Querist)
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27 August 2012 Dear Sir,
Please clarify in the above example how much will be paid to the service provider and how much service tax will have to be deposited.

sri rama krishna mallela

sri rama krishna mallela (Expert)
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27 August 2012 pay to advocate 20000 less tds @10.3%
Pay service tax on 20000

Manoj Kumar

Manoj Kumar (Querist)
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27 August 2012 Thanks for the reply....

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