22 December 2013
Dear Sir, We are getting a work contract from party-A and to fufilling the contract we have subleting the same contract to party B .In this position we raise invoice to party-A with ST of 12.36% on basic value and party-B raise Invoice to us with out claiming any ST.
Again we are depositing the entire ST received from party-A as service provider but do not depositing any ST as service receiver from party B under reverse mechanism. So is it creat an extra liablity on us to deposite 6.18% of the bill value of the party-B.Please explain. R.Mishra
CAclubindia
