Dear Sir,
I am a Manpower Consulting Firm, Propreitor in nature.
I am raising invoice to my clients aginst manpower services provided. As i understand, under the Reverse Charge Amednment Act 2012 for Service Tax, my ST Liability is 25% of the Bill Value @ 12.36% while rest 75% of the Bill Value at 12.36% is liability for the client)service receiver). So if I am raising invoice of INR 100,000, then @ 12.36%, ST is INR 12,360. In this Service Provider Liability is INR 3,090 and Service Receiver is INR 9,270.
My first question is, is this calculation correct. If so, am i liabile to raise the INR 9,270 from Service Receiver in form of Service Tax, or the Service Receiver can choose to pay the ST directly to the government. If so, in that case I will file only INR 3,090 as ST from my ST Returns. Is that correct.
If the above is correct, then do i need to collec any such document like some kind of certificate from the Service Receiver as a proof that Service Receiver has agreed to pay the remaining liability on behalf of me.
Also, if the Service Receiver doesnot pay the ST to Govt. is there a recourse for the Govt to me(service provider).
Pls advice.
CAclubindia
