09 October 2014
In respect of Works contract services what amount should be shown as turnover. For example value of service is Rs.100.00 and Rs.70.00 is service component, 50% of ST to be collected by the Service Provider and 50% of ST to be to be payable by the Service Receiver under reverse charge.
If we show Rs.100.00 as turnover and ST as 12.36% , the system will automatically calculate st as Rs.12.36
If we show ST rate as 4.326 the system says the rate is not as per the rule.
Do we have to reduce the turnover so that it will adjust to ST collected and paid.
The position is worse when all types of works contract services are provided with service component of 70%, 40% and 60%/
09 October 2014
Show the gross amount claim 30% as abatement. If you choose the right service, depending upon the service you can claim 30% and 60% abatement. You can not show ST rate as 4.326.
09 October 2014
I can show 30% as abatement. But what about reverse charge of 50% to be payable by the service receiver. I am collecting only 50% of 70%
09 October 2014
I can show 30% as abatement. But what about reverse charge of 50% to be payable by the service receiver. I am collecting only 50% of 70%
12 October 2014
I think the question is not properly understood by you. A10.2 and A10.4 is question applicable to service receiver under reverse charge. In my case my client is only service provider. He will collect tax , if Rs.100 is the service value, on Rs.70.00 50% of 12.36%. That is effective rate of 4.326%.
Now I have to present the figures in ST3. If I show turnover Rs.100 in B1.1, as you said I am not permitted to type Rs.30 at B1.11 as abatement. I have noticed that I can not type anything. Now the 2nd confusion is what is the rate to be typed in B1.15. If I type 12% automatically the system calculates at 12% , the tax collected is 50% of 70%.
CAclubindia
