Rule-7 of potr

This query is : Resolved

Nishant Kakkar (Querist)
Follow

02 May 2016 Dear sir, we are running initially as a proprietor concern which has been convert on 01/04/2015 into Private limited with the same business of providing manpower recruitment in NCR-Gurgaon. In the month of march-15, we have raised invoice of Rs. 3,00,000/- charging service tax of Rs. 9,270/- (3,00,000*12.36%*25%) thus Gross amount of bill is Rs. 3,09,270/- out of which we have deposited service tax of Rs. 9,270/- on the basis of POT. Subsequently i received payments of Rs. 3,00,000 (Less TDS) instead of Rs. 3,09,270/-(Less TDS) after 30th April-15 as they deducted the amount of ST of Rs. 9,270/- with the shelter of reverse Charge mechanism Rule 7 of POTR. so my question is what should i do as i have already paid the amount of ST. to Gvt. and service recipient again deducted the amount of S.Tax while payment to us. we have N number of case likewise mentioned above amount to Rs. 6,00,000/- Aprox. Is it legal or is there misunderstanding of law. kindly guide. Thanking you Nishant kakkar M-98710-34071 .

Read more at: https://www.caclubindia.com/experts/ask_query.asp

CMA Nishad Patkar

CMA Nishad Patkar (Expert)
Follow

03 May 2016 1. Had you raised the Invoice as a proprietor?
2. To whom you raised the Invoice is a Company?

Message likes : 1 times

Nishant Kakkar

Nishant Kakkar (Querist)
Follow

03 May 2016 Yes we have raised invoice in the month of March-15 with the status of proprietorship and on 1st April-16 we have converted into Pvt. Ltd. while we have already paid service tax to Gvt. and party has also deducted the amount of service tax as mentioned above while paying the amount to us as per the proviso of reverse mechanism of Finance Act-1994.

So my question is that ultimately we have paid S tax Twice. while it is fault of client so what is the provision/ rules to demand my money back from client as i already paid to government.

Please guide me.

Thanking you

Upgrade to CAclubindia Pro. Subscribe Now!

Nishant Kakkar

Nishant Kakkar (Querist)
Follow

03 May 2016 yes party is Pvt. Ltd when we raise the invoice. and
we are proprietorship.