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Service tax under rsm

JAYS (MBA) (97 Points)

28 March 2016

Dear team, I wanted to know whether we have to take confirmation on email for payment of service tax under reverse charge from our clients whom we are providing transportation services as we have less than 10 trucks..already declared w.e.f 01.06.2015.. Regards, Jays..

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4 Replies

Niraj Kumar Sinha (Sr. Officer, SPSIL) (648 Points)
Replied 28 March 2016

No. If service recepient is liable to pay the service tax, you need not any confirmation from the party.

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JAYS (MBA) (97 Points)
Replied 28 March 2016

Thanks Niraj,

however what to do if we have charged the service tax in some bills by mistake..

and some of our clients dont have ST2 ..then how can they pay service tax under RCM..?

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 29 March 2016

Once you charge the ST and do not indicate that the client has to pay, it is deemed that you are collecting the ST from the client. You need to ensure only whether client is a specified person/ regd dealer, factory, company...

Say you charge 100 + 4.50 in bill. Then if paid full you need to pay 4.5 and if paid only 100 then 100x 4.5/104.5.

JAYS (MBA) (97 Points)
Replied 29 March 2016

Thanks madhukar..however please suggest what we need to do where the firm/company doesn't have ST2 and they are the service receiver of transportation service.,..and we have not charged in the bills raised earlier...