Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2013 I am doing a contractor's Account, who have taken contracts from a SAIL and some of jobs distributed to sub-contractors, SAIL collected Service tax & TDS from bill of contractor & Contractor collected Service Tax & TDS from sub-contractor, plz tell me the treatment should I do?

CA Hemlata Saini

CA Hemlata Saini (Expert)
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17 September 2013 treatment of which transaction you are asking for? whether reverse charge applicable on you and your sub contractor???

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2013 Thanks for your kind response Hemlata Ji
Suppose X (the Contractor)submit a bill to SAIL (Gross bill Rs.100000/-+ Service tax Rs.12360/-) Total Rs.112360/- what will be the entry?
and Y (The sub contractor) submit a bill to X Total Rs.56180/-(Gross Bill Rs.50000/- + Service Tax Rs.6180/-)What will be the entry?
Both entry should be In the books of X.

CA Hemlata Saini

CA Hemlata Saini (Expert)
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20 September 2013 in the books of x

sail a/c dr 112360
to gross work done 100000
to service tax 12360

gross work done 500000
service tax input 3090
service tax input
reverse charge 3090

to y 53090
to service tax reverse
charge payable 3090

Assuming reverse charge applicable.

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