Section 194j with reverse charge of service tax.

Save Share

This query is : Resolved

SANKET (Querist)
Follow

29 January 2013 Under reverse charge of Service Tax (ST), ST is 100% payable by recipient of services in case of services provided by Advocate or legal firm.
Service Recipient(SR) has to make payment while deducting tds u/s 194J.
So my Q. is that if the invoice amount is 1,00,000Rs. (excl. ST) then what is the amount of ST payable by SR and what is the amount of TDS deducted by SR? & what is the net amount payable by SR to service provider?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

29 January 2013 TDS = 10% of Rs 100000/-
ST under reverse charge = 12.36% of Rs 100000/-

i.e., both on invoice amount.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

30 January 2013 TDS u/s 194J applies at the time the amount is paid or credited in Payees Account. Since amount paid or credited in the Advocate's account is Rs.1,00,000, 194J applies on Rs.1,00,000/- only.

SANKET

SANKET (Querist)
Follow

31 January 2013 thank you Sir for your reply it helps me a lot.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now