08 October 2012
We are cab operator providing services to both corporate assesseee and non corporate assessee. During this year we are claiming exemptions (SSI exemptions) and accordingly not charging service tax from clients. we already have raised invoices upto sept 2012 without charging service tax.
One of our client told us that Now from July 2012 onwards, reverse charge mechanism comes into effect where 40% of service tax requried to paid by Service receiver (Corporate assessee).
Our question is since we are availing exemption benefit and not including service tax in invoices. (a) how we treat the above invocies raised to coproate assessee from july 2012.
- whether to raise debit notes (from july 2012 to sept 2012 invoices) - to convey them and told them to pay service tax. since they are liable to pay service tax and file service tax return.
08 October 2012
Your client has correctly said about the taxability of your service. a. You need not change the invoices raised to corporate assessee except to the extent of the note that the service tax is payable by the company on a 40% abatement. You need not raise debit notes for the same.
CAclubindia
