Amendment in charging service tax
This query is : Resolved
10 October 2012
Dear All,
We are receiving the manpower(Security & Housekeeping) from Some service provider.
We have received their invoice, wherein they have charged 3.09% of Service Tax to the bill.
Is this correct? If yes, how do need to act in this case?
If no, please tel me the correct procedure to charge Service Tax.
We are receiving the manpower(Security & Housekeeping) from Some service provider.
We have received their invoice, wherein they have charged 3.09% of Service Tax to the bill.
Is this correct? If yes, how do need to act in this case?
If no, please tel me the correct procedure to charge Service Tax.
10 October 2012
W.e.f 1/7/2012, the manpower consultant billing to a business entity has to discharge only 25% of the service tax liability as the provider of service. This is 3% tax + .09% cess. The service receiver has to bear the 75% of the tax liability. Therefore you have to register as service receiver and pay 9.27% tax on reverse charge basis.
10 October 2012
1. The rate charged is as per the levy called as 'reverse charge' method.
2. But reverse charge will apply only if the service recipient is a business entity registered as a body corporate.
3. Therefore ,the levy of 3.09% is correct if your status is private / public limited company.
4. If the above condition is satisfied, you have to pay the balance service tax @ 9.27% to government after taking registation.
2. But reverse charge will apply only if the service recipient is a business entity registered as a body corporate.
3. Therefore ,the levy of 3.09% is correct if your status is private / public limited company.
4. If the above condition is satisfied, you have to pay the balance service tax @ 9.27% to government after taking registation.
10 October 2012
Dear Mr Chakrapani,
In this case whole 12.36%(100%) of service tax will be bared by the Service receiver??
Am i correct??
In this case whole 12.36%(100%) of service tax will be bared by the Service receiver??
Am i correct??
10 October 2012
Yes, 3.09 % to the service provider for onward remittance to government and 9.27% directly to Government.
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11 October 2012
Dear Mr Chackrapani,
Is it possible to offset this 9.27% of Service tax with our input tax?
Or is it compulsory to make the Payment to Govt?
Is it possible to offset this 9.27% of Service tax with our input tax?
Or is it compulsory to make the Payment to Govt?
11 October 2012
You can claim this as your input. Only get clarification of body corporate. Logically it would mean ltd. company but once when I had not registered a firm the ST officer had told me that body corporate in Service tax also means firms.
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