CA girl (Article Trainee-CA Final) (1942 Points)
27 April 20131.How to identify whether a particular works contract would qualify for Partial Reverse charge of Service Tax?
2. Will the service provider charge any service tax on the invoice for partial reverse charge(for works contracts)?
3. Composition scheme is basically adopted by a service provider who provides a taxable service as well as supplies materials (on which he charges VAT) through the same works contract? Am I right?
Rishabh Mishra
(Student CA Final )
(44 Points)
Replied 27 April 2013
Rishabh Mishra
(Student CA Final )
(44 Points)
Replied 27 April 2013
Partial Reverse Charge Mechanism is not applicable for all cases. For Partial Reverse Charge Mechanism to apply, it needs to fulfil 2 conditions:
If both these two conditions together are satisfied then the service tax will be applicable under the Partial Reverse Charge Mechanism wherein we (BD) will be required to deposit part of the service tax to the Government directly, and part of the service tax will be billed to us by the Service Provider
Rishabh Mishra
(Student CA Final )
(44 Points)
Replied 27 April 2013
hi divya. from where u r pursuing articleship?
CAclubindia
