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
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Reprocessing of rectification order AY 2025-26
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Foreign lottery ticket bought online from India: legality, tax and consequences
- TDS on TRUST
- Putting a heading on received mail
- Section 50-fixed asset-->building ceases to exist
- Regarding Applicability of Tax Audit u/s 44AB
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
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
