Service tax ....

Hi All,

I have doubt on the service tax:

Example on invoice raised to company:

Bill amount : 50,000/-

Service tax : 6,180/-

Total : 56,180/-

But the company piad :50,535/-

(when asked we have reduced TDS,and we will give form16,this is the procedure we follow )

Query1:Service tax has to be paid by the firm who riased invoice in this case??

Query 2: For the above invoice can i ask the company to pay service tax by them selves and give me bill amount 50000/- and i will pay TDS???But is there any advantage to any of the party's doing like that..

Please do educate us regarding how to riase invoice for service like manpower,etc...

Thanku

 

 

 

 

 

 

 

Replies (1)

Ans:1 . Liabilty to collect & deposite service tax is on service provider and not on service receiver (except revers charge mechanism). Firm is liable to deposit tax.

Ans: 2  As said above firm can't escap from his service tax liabilty. Liabilty to deduct TDS who makes payment (company not the firm)

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