Seles Bill of Services - Under Reverse Charge mechanism(RCM)

Example : 1

  • JMR Associates provides collection and recovery
    services to Yes Bank Limited these services
    are on month to month basis.
  • JMR Associates will give  Bill to Yes Bank Limited
  • every month after providing the services of
    collection/Recovery. in which service tax will not be levied.
    because Collection/Recovery service of the bank
    comes under (Reverse Charge Mechanism)
Sale Bill
  • JMR Associates provided Recovery services Against
    Personal Loan Prod. to Yes Bank Limited
    from 1-Dec-2021 to 31-Dec-2021

  • JMR Associates will give the bill for the month
    of Dec-2021 to MBI bank Ltd. by 15th of the
    next month MBI bank Ltd. will pay the bill within next 15 days
Invoice :-
Bill date : 15-01-2022
Bill Month : Dec-2021
Bill No : ___________
HSN/SAC : 998592
Products : Personal Loan
Description of Service : Collection & Expenses
Bill Amount : 1280560
GST : 0% 
Total Bill Amount : 1280560
(Tax is payable on reverse charge basis)

Receipts
MBI Bank Limited paid Rs 1254948 after 
deducting  2% TDS of  the Rs 1280560 Bill

Receipt Date : 30-01-2022
Bill Amount : 1280560
TDS             :  25611
Net Amount : 1254948