Service Tax RCM on Import Service

[NARESH VIJAY]

Dear Sir,

We have received Service from our foreign Service Provider. But Agreement with service provider all the taxes are to be borne (TDS) by Service Receiver

I.e. Invoice Amount - Euro 4210

TDS @ 10% - Euro 421 - TDS Amount Paid by SR

Total Amount - Euro 4631

Please advice service Tax RCM applicable on Invoice Amount (Euro 4210) or Total Amount ( Euro 4631).

Thanks

Anoop

AI Summary

Service Tax Under RCM: Apply Tax on Gross Invoice Amount, Exclude TDS from Calculation A discussion on a forum addresses the applicability of Service Tax under the Reverse Charge Mechanism (RCM) for services received from a foreign provider. The issue is whether the tax should be calculated on the invoice amount of Euro 4210 or the total amount including TDS of Euro 4631. Two participants agree that the service tax should be applied to the gross invoice amount of Euro 4210, as TDS should not be included in the service tax calculation. They emphasize that TDS is a separate obligation and should be paid to the government, but it does not alter the taxable amount.