Reverse mechanism
This query is : Resolved
22 December 2013
Dear Sir,
We are getting a work contract from party-A and to fufilling the contract we have subleting the same contract to party B .In this position we raise invoice to party-A with ST of 12.36% on basic value and party-B raise Invoice to us with out claiming any ST.
Again we are depositing the entire ST received from party-A as service provider but do not depositing any ST as service receiver from party B under reverse mechanism.
So is it creat an extra liablity on us to deposite 6.18% of the bill value of the party-B.Please explain.
R.Mishra
We are getting a work contract from party-A and to fufilling the contract we have subleting the same contract to party B .In this position we raise invoice to party-A with ST of 12.36% on basic value and party-B raise Invoice to us with out claiming any ST.
Again we are depositing the entire ST received from party-A as service provider but do not depositing any ST as service receiver from party B under reverse mechanism.
So is it creat an extra liablity on us to deposite 6.18% of the bill value of the party-B.Please explain.
R.Mishra
22 December 2013
Hi,
Can you state Status of Your company, party A & party B.
What is nature of contract?
Thanks//VaibhavJ
Can you state Status of Your company, party A & party B.
What is nature of contract?
Thanks//VaibhavJ
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
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- CLOSING STOCK QUERY
- Taxability of credit in canara bank ET & T section (NRO)
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
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
