Reverse charge
This query is : Resolved
22 July 2013
Is reverse charge on supply of manpower services and hiring of motor vehicles designed to carry passenger services applicable if only exempted services are provided by the company?
22 July 2013
if sev provided are exempted then there no reverse charge is applicable in my view.
22 July 2013
Even though service receiver providing exempted services..
you cannot avoid reverse charge obligations..
and your part of liability cannot be shifted to service provider..
So you need to pay service tax under reverse charge and then need to claim refund service tax paid under rule 5B of service tax
Thanks & regards
Ganesh babu k
you cannot avoid reverse charge obligations..
and your part of liability cannot be shifted to service provider..
So you need to pay service tax under reverse charge and then need to claim refund service tax paid under rule 5B of service tax
Thanks & regards
Ganesh babu k
22 July 2013
Exempted service which is provided by the company is public roadwork.
Input services used to provide such output service are works contract service, supply of manpower service and hiring of vehicle for carrying passenger services. All the three input services are covered under reverse charge mechanism.
Clause 29 (h) of the mega exemption notification says:
“Sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt.”
Is any exemption available to the company regarding works contract service from reverse charge or company is liable to pay reverse charge for all three input services?
Input services used to provide such output service are works contract service, supply of manpower service and hiring of vehicle for carrying passenger services. All the three input services are covered under reverse charge mechanism.
Clause 29 (h) of the mega exemption notification says:
“Sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt.”
Is any exemption available to the company regarding works contract service from reverse charge or company is liable to pay reverse charge for all three input services?
22 July 2013
YES ,co can avail exepmtion as its covered under the mega exemption notification mentioned by you above.
22 July 2013
i.e. reverse charge is to be paid for supply of manpower service and hiring of vehicle for carrying passenger services only
22 July 2013
@ Neha Gupta. Your query should be very specific as there are two parties involved in Reverse charge mechanism, i.e service provider and service receiver. The service tax is to be paid in some cases jointly. So, Please ask like this:
I am a service provider, or i am service receiver. What is the liability of SP or SR for specific services (10 services are there in reverse charge mechanism) like insuranc, gta, sponsorship, arbitral tribunal, legal services, govt services, renting of motor vehicle to carry passengers, manpower supply/security, wc, Director fees. It will be easy for the experts to analyse and give fitting reply..Thanks
I am a service provider, or i am service receiver. What is the liability of SP or SR for specific services (10 services are there in reverse charge mechanism) like insuranc, gta, sponsorship, arbitral tribunal, legal services, govt services, renting of motor vehicle to carry passengers, manpower supply/security, wc, Director fees. It will be easy for the experts to analyse and give fitting reply..Thanks
22 July 2013
I am a service provider providing works contract services which are exempt[Notification No. 25/2012-ST, dated 20.06.2012]
For the purpose of providing such works contract services some part of the works contract is sub-contracted. The services received from sub contractor are in the nature of works contract, supply of manpower services, hiring of passenger carrying vehicles which are covered under reverse charge mechanism.
Now my query is, since company is providing exempted services (Notification No. 25/2012-ST, dated 20.06.2012, is there any liability of the company on account of reverse charge on the receipt of above said services.?
For the purpose of providing such works contract services some part of the works contract is sub-contracted. The services received from sub contractor are in the nature of works contract, supply of manpower services, hiring of passenger carrying vehicles which are covered under reverse charge mechanism.
Now my query is, since company is providing exempted services (Notification No. 25/2012-ST, dated 20.06.2012, is there any liability of the company on account of reverse charge on the receipt of above said services.?
06 August 2013
Please note that N/N 25/2012 is applicable to SERVICES and NOT SERVICE PROVIDERS.
In simple words it means that SERVICES are exempt and NOT SERVICE PROVIDERS.
Specific services have been exempt. If a person is providing more than one service and one of them is exempt, that does not mean that the service provider is exempt from service tax on all services.
Similarly, reverse charge is a different concept from exemption. A person may be exempt from service tax on services provided by him. But he will still be liable to pay service tax under reverse charge because liability under reverse charge is fixed by Section 68 read with N/N 30/2012.
So, in the above case you are liable to pay service tax on manpower supply services and renting of motor vehicles under reverse charge.
In simple words it means that SERVICES are exempt and NOT SERVICE PROVIDERS.
Specific services have been exempt. If a person is providing more than one service and one of them is exempt, that does not mean that the service provider is exempt from service tax on all services.
Similarly, reverse charge is a different concept from exemption. A person may be exempt from service tax on services provided by him. But he will still be liable to pay service tax under reverse charge because liability under reverse charge is fixed by Section 68 read with N/N 30/2012.
So, in the above case you are liable to pay service tax on manpower supply services and renting of motor vehicles under reverse charge.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
Trending Online Classes
CAclubindia
