Service tax amt to be shown in invoice in reverse charge

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2012 Kindly guide us in the matter as to those service providers who are individuals/ HUF/Firm registered in Manpower Supply Services or Security Agency services, then in their invoice they are suppose to charge only 25% of service tax or at the full rate. Lets assume a eg - that invoice raised is of Rs. 1000 and service tax is Rs.123.6, the invoice amount should be 1123.6 or since he is registered in Manpower Supply Services then service tax to be charged should be - 25% of 123.6 ie 30.9 and invoice amount should be 1030.9- as he is obliged to pay to the Department only 25% of the portion of service tax.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

18 September 2012 First They Need to Charge Total 12.36%,
Take Total Amount
Less: Payable ST by Receipient 75% Less That

Net Amount is Payable.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2012 if you could explain me by an example then it would be beneficial for raising the invoices.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

18 September 2012 go to link for practicle aspect

https://www.caclubindia.com/share_files/service-tax-reverse-charge-sample-invoice-50026.asp#.UFhgXbIgcl8

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

18 September 2012 The Invoice would be raised like:-

Value of taxable Service- Rs. 1000.00
Add:- ST 25% of 12.36% Rs. 30.90
Total Rs. 1030.90

Note in the invoice:- 75% of the Service liability is to be paid by the service provider directly to the govt under reverse charge.

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