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Service tax short payment of bill
Hello everyone.we are a private ltd co and we hire security services for our site.they raise the bill adding their part of service tax i.e. 25% of total service tax under reverse charge mechanism. For the mnth of feb 2013 they have raised a bill of rs 137000 including st. But we are deducting rs 2500 for negligence in services. Are we required to pay service tax on rs 2500 that we are deducting?what are the other ways?the bill doesnt have any mention of rs 2500.it is gross.
Replies (4)
service tax on reverse charge is liable to pay on payment basis. so whatever basic amount you pay you are liable to pay on that amount only under reverse charge too
Is it so? Because my superior has told me that it is on billing basis and not on cash basis. It is billing basis since July 2011.
FOR SERVICE PROVIDER PAYMENT OF SERVICE TAX ON BILLING BASIS. FOR SERVICE RECEIVER PAYMENT UNDER REVERSE CHARGE IS LIABLE AT THE TIME OF PAYMENT TO SERVICE PROVIDER
thankew Vatsal for the clarification.
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