Service tax reverse charge

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2014 We are the Pvt Ltd Company and we are getting house keeping service from one agency (Sole proprietor).

As per the ST reverse charge rules, the agency charging 25% of the Service Tax (3.09%)in their invoice, and the agency is requesting us to pay remaining 75% of ST (9.27%)to the dept.

My question here is. We are not registered under service tax, because it is not applicable for our business, still is it necessary to pay 75% of Service tax? how can we pay the Service tax, when it is not applicable for us.? please help me.

Arun Kumar Singh

Arun Kumar Singh (Expert)
Follow

01 August 2014 You need to pay service tax on the value of 75% under reverse charge system vide notification no. 30/2012-ST.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

02 August 2014 you have to register under service tax as u are liable to pay as a service receiver..
.
.
under RCM u have to pay your part of service tax under your service tax registration
.
.
You better do register and pay ST asap..other wise with effective from 01-9-2014 interest rates have raised with new budget

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2014 Thank you for the information.

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