15 January 2014
My company is a PVT.LTD. company and we supply guards to another PVT.LTD company.We have raised bills inclusive of service tax but service receiver says that they will deposit 75% of service tax and only 25% service tax they paid to us.Is this the right way?Please clarify.
15 January 2014
Dear friend . . Explain to ur service receiver that reversecharge not applicable inthis case.. . . Reversecharge applicable only if service provider is other than company . . . Ask them to read notification of reversecharge carefully.. . .
Hence what u have done is correct..as reversecharge not applicable here u only have to collect full servicetax and have to deposit to govt..service receiver not responsible where reversecharge not applicable