St under reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2015 our company is making payment against short payment of ST under under RCM for april 15 now so whether ST will be paid 12.36% or 14%. whether any interest will have to paid ?

CA Himanshu Ojha

CA Himanshu Ojha (Expert)
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07 July 2015 Pay the balance tax amount @12.36% with Interest.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2015 BUT THE ST UNDER REVERSE CHARGE CAN BE PAID WITHIN 6 MONTHS SO WHY TO PAY INTEREST??

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CA Himanshu Ojha

CA Himanshu Ojha (Expert)
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07 July 2015 First refer the rules.

W.e.f 01-10-2014 in case of services which falls under RCM, the point of taxation shall be the date on which payment is made to service provider, if the payment for such service is made within 3 months from the date of invoice.

If not paid within 3 months then point of taxation will be the date immediately following the period of three months- first proviso to Rule 7 of POT Rules as amended w.e.f 01-10-2014.

Trust this clarifies.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2015 Thanks alot....it clarified my doubt..