Service tax

Queries 574 views 1 replies

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

Replies (1)

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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