S t liability under reverse mechanism
This query is : Resolved
Guest
Guest
(Querist)
20 August 2013
Sir,
As regards to works contract service,Payment received from clients amounts to Rs.15 lakhs in the same month 20 lakhs paid to individual sub contractor.How can I calculate my S T liability ?
As regards to works contract service,Payment received from clients amounts to Rs.15 lakhs in the same month 20 lakhs paid to individual sub contractor.How can I calculate my S T liability ?
CA Suresh Jain
(Expert)
22 August 2013
I would like to clarify that Point of tax is earliest of a) receipt of payment or b) date of invoice or c) 30 days from the date of providing the service.
If you turnover of taxable service as calculated above has not crossed Rs10 lakh you need not pay service tax on the service provided by you.
But, despite the fact the you are still exempted you need to pay service tax on the works contract service received by you.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
If you turnover of taxable service as calculated above has not crossed Rs10 lakh you need not pay service tax on the service provided by you.
But, despite the fact the you are still exempted you need to pay service tax on the works contract service received by you.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
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