Dear All,
I have few queries on S.tax:
1.S.provider includes s.tax amt amt in invoice and gets the entire amt from the receiver and pays s.tax amt to the govt in normal case... Is my understanding right?
2.In case of reverse charge, does s.provider raise the invoice along with the s.tax amt or he simply raises the invoicce for the service rendered alone???
3.In case of partial reverse charge, how does the s.provider raise the invoice?
In case of 1. you are absolutely correct, in case of 2 Service provider will raise invoice without charging ST because liability to pay tax casted upon service receiver and serv rec is liable to pay ST out of his pocket.
3. In case of joint charge mechanism , service provider will charge ST only to extent which he is liable to pay.....the ST payable by service receiver will be paid by service rec from his pocket....however service receiver can claim the credit of ST paid if the service is input service for him.One more thing is that the liab of both service rec and provider under joint charge is independent and both need to worry of the options adopted by them like abatment , exemptions etc.
1. You are correct
2. Raise invoice without serivce tax
3. Raise invoice with service tax applicable for service provider. Eg for Manpower supply charge tax on only 25% value)
T R SOOD & CO
New Delhi
CA Inter
View Details
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
View Details
CAclubindia
