How can small service provider claim refund of service tax deducted by company under reverse calculations while making payment for services? Mutual fund co. is reducing Service Tax ( calculated on reverse workimg basis) while making payment to its agents saying that the tax as per reverse charge mechanisum is calculated and reduced from their value of services. Here, an agent who is small service provider( i.e. below 10 lakhs turnover ) is loosing his money. Are there any provisions to recover that service tax portion?
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Rcm refund for small service provider
Replies (5)
The deduction must be TDS and not Service tax!!!
Sir, assessee is saying that the amount deducted equals to service tax portion and he has confirmed with the compnay.
My dear, Service tax is generally charged extra. So that means either commission paid is inclusive of service tax, or the arrangement must be like, MF can deduct any amount of liable taxes, fees etc. as liable from time to time from the commission.
But check the bill or statement of payment, or even 26AS of the client, I think again, it would be TDS u/s. 194H
Sir, I think section 194H excludes commission received on transactions from securities.
yes, you are right, but unless any deduction statement/certificate received from MF agency we can't assess anything. Then only first point i.e commission inclusive of all liable taxes, would be possible.
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