Reverse mechanism

This query is : Resolved

CA ANKITA AGRAWAL (Querist)
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24 December 2012 i want to know that in case of service with partial reverse mechanism like in case of security service the service provider will have to show full service tax amount in his invoice

Jayant Bothra

Jayant Bothra (Expert)
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24 December 2012 If the service is provided by an individual, HUF, partnership firm to a body corporate then the service provider will pay service tax on 25% of the value and rest will be discharged by the body corporate.
So. supposingly if the value of service provided is Rs. 100/- then service provider will shown his liablity on the invoice i.e. 100 X 25% = RS. 25 X 12.36% = 3.09.
Therefore the amount on invoice will be Rs 100 + 3.09(ST) = 103.09/-

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CA JAYANT BOTHRA
M: 9873-626-020