Format of invoice under reverse charge mechanism

What should be the format of invoice under reverse charge mechanism. What will be rate of tax how it should be displayed.

Replies (6)

There is no separate format for invoice.  It will be the same as earlier.  But how much service tax is to be paid by receiver, and how much service tax is to be paid by provider has to be shown separtely in the invoice to avoid confusion.

Showing value of service tax paid by service receiver is ok but what accounting will be done by service provider ? means how much amount to be credited to service receiver (Basic value+12.36% tax)or (Basic value+50% of 12.36% tax in case of Work contract).

The Service provider only liabile for 50% of the Service Tax payable. So provider should account only to the extent of 50%. But on the other angle Service receiver while accounting , he should account 50% under direct method, and immediately account the balance 50% under reverse mechanism.

Sir, What about TDS, Deduct on 100% service tax or 50% ?

TDS as per Bill that means the service provider only collected 50% of Service Tax. For example

 

Taxable Service                                               Rs. 100 

Service Tax (50% on 12.36)                                      6.18

Total Bill Amount                                                       106.18

TDS at applicable rate on 106.18

The balance Service tax Rs. 6.18 (50%) you should pay to Department and not to the Service provider.

 

 

Sir,

If I receive AMC payment hly after end of the period, how should I maintain value of parts used during AMC period. As per rule we can charge Service tax on 70% of AMC value if we use components during AMC period how to mintain rest 30% as parts/material and other exp.
Also suggest me about vat chargeable on components.

Thank u.

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