Accounting in reverse charge machanism

This query is : Resolved

CA Gaurav Ajit Potdar (Querist)
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08 June 2013 1 of our client receive security service which is covered under reverse charge machanism the billing of which is as under

Security Service Rs 100
ST 3.09
ST to be born by
Service receiver 9.27

Total bill Amt
Payable 103.09

now how will we account the same what is the amt of expenditure that will be shown in the p&l is it 103.09 or 112.36
we donot take ST credit
and at what amt TDS is to be deducted on 103.09 or 112.36

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 June 2013

Service provider where covered under reverse charge method need to raise the invoice with service tax of their portion only.

In case service receiver, if not taking cenvat credit then need to account total amount as expenses only so expenses Rs.112.36.

But in TDS point, tds apply on only the bill Amount of Rs. 103.09

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