Service tax reverse charges mechanism
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 October 2012
We received some services (Valued Rs.1,00,000)from outside india in March (Invoice date March'12.).
We utilised these services for our generating income (Rs.1,50,000). We received the income in April '12 and paid the service tax on that within next 3 days .
However , we paid the non resident party in june'12.
Note :- 1.There is only one transaction and we can prove one to one correlation,
2. I believe there is no revenue loss to Dept. as we have deposited the full tax on income ie.
Income service tax = Abroad payment service tax + Income service tax Balance payment after Credit of Abroad Service tax.
1.Are we liable to pay Service tax under reverse charging Mechanism ?
2. Please provide any case law , if my points in Note are correct.
We utilised these services for our generating income (Rs.1,50,000). We received the income in April '12 and paid the service tax on that within next 3 days .
However , we paid the non resident party in june'12.
Note :- 1.There is only one transaction and we can prove one to one correlation,
2. I believe there is no revenue loss to Dept. as we have deposited the full tax on income ie.
Income service tax = Abroad payment service tax + Income service tax Balance payment after Credit of Abroad Service tax.
1.Are we liable to pay Service tax under reverse charging Mechanism ?
2. Please provide any case law , if my points in Note are correct.
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 October 2012
- 1.There is only one transaction and we can prove one to one correlation,
2. I believe there is no revenue loss to Dept. as we have deposited the full tax on income ie.
Income service tax = Abroad payment service tax + Income service tax Balance payment after Credit of Abroad Service tax.
2. I believe there is no revenue loss to Dept. as we have deposited the full tax on income ie.
Income service tax = Abroad payment service tax + Income service tax Balance payment after Credit of Abroad Service tax.
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