Service tax under rever charge and tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2014 Sir,

I need a help on the calculation of service tax under reverse charge and TDS .

Say the amount paid as Security Services is Rs.16000/- to non-corporate assessee and no service tax is being charged by the service provider, what is the net amount payable to service provider,what is the amount of service tax to be paid by the service recipient and the amount of TDS ?

Thanking in advance for all answers.

Annu Agarwal

Annu Agarwal (Expert)
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03 January 2014 Reply:
1.Reverse charge shall apply
When Service provider:Individual,HUF,Partneship firm ,AOP
Service Receiver:Body Corporate
Then 25%Service tax shall be paid by Service provider and 75% by service receiver.
Your case:As the service providr is not charging any service tax may be he is covred under SSI exemption .But you need to pay (if you are a Company)75% service tax i.e 16000*12.36%*75%=1483/- to the government.

2.Tds shall be deducted on 16000/-.As TDS is required to be deducted on amount paid.