Dear 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?
Ms Aishwarya.,
please metion the case details like:
-nature of service
-Constitution of both service provider and service receiver...
the question is incomplete
/articles/reverse-charge-mechanism-in-service-tax-an-overview-15865.asp#.UL2cnIPFWDs
U can get more information from the above article
Thanx friend!
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?
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%
Is the company not eligible for credit, if it pays only 40% of the invoice amount?
As per Cenvar credit rules., the Cenvat credit cannot be claimes when the tax has been collected under composite schemes...
CAclubindia
