Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Service tax liablity

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2012 If a service used by 5 companies like placement services and bill paid by a single co. and that comapny issue debit notes on cost basis to other companies in some fixed proportion,the co. who paid the bill avail full input service tax credit and in debit notes no service tax is charged from other companies. Whether the above method legally valid. and whether there is need to charge service tax on debit invoices

Read more at: https://www.caclubindia.com/experts/ask_query.asp

Amol S Joglekar

Amol S Joglekar (Expert)

15 September 2012 Accounting practice differs from company to company. In the method you follow, the company who has paid the BILL in toto, is carrying the risk of providing SERVICE to these 4 companies... say OFFICE SERVICE or ADMN SERVICE or Business Auxillary Service as is called in old service tax regime.

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