Reverse charges
This query is : Open
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.
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
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.
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.
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.
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.
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.
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.
27 August 2012
pay to advocate 20000 less tds @10.3%
Pay service tax on 20000
Pay service tax on 20000
27 August 2012
Thanks for the reply....
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