aishwarya s raghavan (student) (224 Points)
04 December 2012Dear All!
Please help me with the following query
Is service tax under reverse charge mechanism required to be paid by us even if my vendor does not charge service tax on the invoice amount?
Also are we required to pay service tax on reverse charge basis even if the service provider's turnover does not exceed the chargeable value?
CA bhargava
(CA)
(2017 Points)
Replied 04 December 2012
Ms Aishwarya.,
please metion the case details like:
-nature of service
-Constitution of both service provider and service receiver...
the question is incomplete
CA bhargava
(CA)
(2017 Points)
Replied 04 December 2012
/articles/reverse-charge-mechanism-in-service-tax-an-overview-15865.asp#.UL2cnIPFWDs
U can get more information from the above article
aishwarya s raghavan
(student)
(224 Points)
Replied 04 December 2012
Service provider : Individual
Service receiver : Company
Nature of Service: Car Hire charges
The individual's turnover does not exceed the taxable value of 10 lakhs and in the invoice too service tax amount is not given.
Please clarify. Is the company liable to pay 40% of the invoice amount under reverse charge?
CA bhargava
(CA)
(2017 Points)
Replied 04 December 2012
The Company(service receiver) has to pay service tax on 40% of the Invoice bill., if he want to take cenvat credit , the company can pay on 100%
aishwarya s raghavan
(student)
(224 Points)
Replied 04 December 2012
Is the company not eligible for credit, if it pays only 40% of the invoice amount?
satya
(Executive Excise)
(1839 Points)
Replied 04 December 2012
CA bhargava
(CA)
(2017 Points)
Replied 04 December 2012
As per Cenvar credit rules., the Cenvat credit cannot be claimes when the tax has been collected under composite schemes...
aishwarya s raghavan
(student)
(224 Points)
Replied 05 December 2012
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