Service tax "reverse charge mechanism'

Dear all

If a partnership firm rendered service under "Construction of Res. Complex" service in march 12. If it raised invoice in July 12 what will be the rate of service tax & abatement (No payment is received till July 12). It will very helpfull to me, please reply soon. I also request you to please provide the reference circular / notification.

 

Regards

 

SANTANU

Replies (4)

Dear Santanu

Value for service portion shall be 40 % of total amount charged .  please go to rule 2A  Clause (ii) of new  determination valuation rule, 2006 effective from 01.07.2012

Thanks for your quick reply. Is there any necessity to raised invoice within June 12 for wrok done within March 12?

 

regards

 

SANTANU

in general view there is no necessity to raised invoice in june 12,

Dear All,

1.) Security Service Provider is Company in this case Reverse Charges mechansim is applicable for  25 / 75 % (ManPower Service)

2.)  when we input service Tax Credit in Reverse Charge Mechansim Case

Thanks & Regards

Raja

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