Normally, service tax is computed on value of service and gross amount (value of service + ST ) is billed to customers.
but sometimes it is found that under reverse charge mechanism, ST is computed on Gross billed amount. Why???
plz suggest
bj shrestha (student) (71 Points)
03 October 2012
plz suggest
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 03 October 2012
under reverse charge mechanism ,service tax is paid(to the govt.) by the service recepient ..so the service provider does not include ST in the bill
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