Jayanthi (jao) (54 Points)
13 August 2012Hi,
Please tell how the invoice will be prepared by the service provider incase of works contract where service provider is liabile to pay only 50% of service tax. Whether he will show 100% of service tax or only 50% in the invoice. If it is 50%, then how the service receiver will show the remaining 50% in the invoice since it forms a part of expenditure.
Thanks.
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 13 August 2012
Service provider should charge service tax only on 50% of the of Invoice value and show only 50% in the Invoice. Service receiver will pay on the remaining 50% of the value and take into his input credit (if eligible) or expenditure account. Service receiver should not mention this on the Invoice.
Regards
Dayananda
Rajib
(Finance Manager)
(22 Points)
Replied 18 August 2012
I blv to be on a safer side a practice of making declaration, that the service tax has been charged on a reverse charge mechanism along with percentage of the same should be made on the invoices raised. An extra bit of pain taken would definitely help your party in following compliances.
SAMRAT GHOSH
(Chartered Accountant)
(64 Points)
Replied 04 September 2012
I agree with Rajib. It is a matter of good and fair practice
shivani
(consultant)
(122 Points)
Replied 04 September 2012
Fine, Make Rubber seal declration and fill in gaps with Valus and % to avoid confusins
- Pl Attach, if any body has the ready sample invoice,
VIKASH KUMAR
(EXECUTIVE-FINANCE)
(21 Points)
Replied 27 September 2012
What is the liability of service receiver under reverse charge mechanism if the small service tax provider is exempted from service tax.
Regards
Vikash Kumar
CAclubindia
