Freight - reverse charge mechanism
Page no : 2
vaibhav
(student)
(253 Points)
Replied 29 February 2016
A ltd charging the service tax under is correct being service provided by business entity. If dey dont charge service tax den liablity to service tax not lies upon you. Except the service provider availe the abatement and mention in his invoice dat he neither take service tax credit on input nor charges service tax on outward service.
In short, you should pay service tax under RCM to party if he chargs in invoice.
vaibhav
(student)
(253 Points)
Replied 29 February 2016
A ltd charging the service tax under is correct being service provided by business entity. If dey dont charge service tax den liablity to service tax not lies upon you. Except the service provider availe the abatement and mention in his invoice dat he neither take service tax credit on input nor charges service tax on outward service.
In short, you should pay service tax under RCM to party if he chargs in invoice.
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