I have two Querry about reverse charges machanism
1- I had charge service tax @ 14.5% (as Propritorship firm) in Interior designing Fees and other party is Pvt Ltd. co. the question is whether I have to pay service tax full i.e.14.5% or 50% i.e. 7.25% (In this case Pvt Ltd. Co had made full payment to me i.e. Net Amt.+Service Tax @ 14.5% amt. Less deducting TDS @ 1% on net amt.) if I have to make 50% payment then why the Pvt.Ltd. Co had made me ful payment @ 14.5%.
2- I had Service Tax no of Propritorship firm with Works Contract Service in which I had charge bill @ 14.5% on 70% (30% as abatement) in which pvt ltd. Co made full payment by deducting TDS @ 1% on net amt. whether in this case reverse charge is applicable or not it means I have to pay Service Tax @ 14.5% or 50% i.e.7.25% of received amt. when I contacted to Pvt Ltd. Co. they told us that they will pay 50% service tax to govt. and 50% will be paid by me (Propritorship) you apply for refund of service tax 50% which you have paid already. if any circular regarding then kindly mail me :vishwakarmavishal86 @ gmail.com
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