Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
12 October 2012Security service provider of our company has sent us invoice :
21,000
add: 3.09% 649
21,649
Is it correct way of invoicing or they should have shown 12.36% full and we pay 75% = 9.27% as receiver under partial reverse charge mechanism and they pay 3.09%.
Please advise.
Regards,
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 12 October 2012
the invoice issued by the Service provider has been correcty made
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 12 October 2012
the invoice is prepared correctly...they can mention in foot note that the balance has to be paid directly by the recepient to the govt.
rahul kumar
(Article assistant)
(67 Points)
Replied 12 October 2012
Yes the amounts mentioned by them is the correct Way,
To get even more clarity In brackets they would have mentioned 25% of 12.36 and the rest is the liability of the receiver.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 12 October 2012
Bill is ok. Alternatively he can add 12.36% and then deduct that portion of the tax to be paid by service receiver.
Vikas
(CA)
(1135 Points)
Replied 13 October 2012
The invoice is correct; You may refer to the pt no.10.1.2 of Education Guider and Rule 4A of the Service Tax Rules, 1994;
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)
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