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
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