payment of service tax, Service Tax

[BAL KRISHAN GARG]

Deal All ,

I have a query that one of my client is providing bus to a company for its employees from different places in delhi to company office by picking and dropping them and charging service tax from the company and paying the same to the Department on quarterly basis . now the company asking him not to charge service tax on the invoice value but asking him to raise the invoice without service tax saying that we will pay the service tax on your bill you need not to include the amount of service tax in the invoice .

Whether the company is right and what should i do ?  if the company is right then whether what procedure we have to follow at the time of filing of Service Tax Return on Half-yearly basis ?

Hope some gentlement will clarify the matter .

 

Thanks to all Members

BAL KRISHAN GARG

Posts / Replies

[Pradeep Khatri]

Under reverse charge mode the Service Recepient is required to pay service tax on 40% of the abated taxable value and service provider is required to pay on 60% of the abated value.

[JAMES PG]

If the bus operator is not a Company and not availing the facility of Cenvat credit, he is not liable to charge ST in the Invoice. It is better to quantify the ST amount and to show as payable by Service receiver under reverse charge. If the part is availing Cenvat, he has to charge 60% of 12.36% in the Invoice and balance will be payable by service receiver