Service tax payment u/r reverse charge meachanism
This query is : Resolved
22 March 2013
sir,
1-From 01-07-2012, under reverse charge mechanism on manpower recuitment agnecy ,we are liable to pay 75 % service tax of total tax, but one agency charge 100 % service tax amount in their bill instead of 25 % service tax amount is to be charged , in such instance shall we have to pay 100 % service tax amount to agency , will this exempts our liability to pay 75% Service Tax under RCM . or shall we pay only 25 % service Tax though they charge 100 % pl.clarify
2- From 01-07-2012 under reverse charge mechanism on labour contract we are also liable to pat 75 % service Tax of total service Tax, but our A/c Dept.paid Labour contractors bills up to Dec-2012 along with 100 % service Tax amount which charged in all those bills Now can we avail 100% Service Tax credit which we paid directly to contractor. still, is there any liability to pay 75 % Service Tax under RCM . pl.confirm best possible option to get rid of this issue.
regds
Vinay KArnik
Ahmedabad
1-From 01-07-2012, under reverse charge mechanism on manpower recuitment agnecy ,we are liable to pay 75 % service tax of total tax, but one agency charge 100 % service tax amount in their bill instead of 25 % service tax amount is to be charged , in such instance shall we have to pay 100 % service tax amount to agency , will this exempts our liability to pay 75% Service Tax under RCM . or shall we pay only 25 % service Tax though they charge 100 % pl.clarify
2- From 01-07-2012 under reverse charge mechanism on labour contract we are also liable to pat 75 % service Tax of total service Tax, but our A/c Dept.paid Labour contractors bills up to Dec-2012 along with 100 % service Tax amount which charged in all those bills Now can we avail 100% Service Tax credit which we paid directly to contractor. still, is there any liability to pay 75 % Service Tax under RCM . pl.confirm best possible option to get rid of this issue.
regds
Vinay KArnik
Ahmedabad
22 March 2013
In query No. 1, you shall still be liable to pay your portion(i.e.75% of service tax liability) under reverse charge mechanism..So, it is advisable to issue a debit note to the Vendor & pay him only 25% of liability.
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