Reverse charge
This query is : Resolved
28 December 2013
If an individual provides manpower recruitment n supply service then is reverse charge applicable?? If yes than how should he raise invoice, hw much ST should b charged??
28 December 2013
Yes reverse charge is applicable in this case.
28 December 2013
Hi Agree with Expert.
An individual is exempted under SSI upto Rs. 10 lacs of service provided.
Moreover he shall issue Invoice without charging ST, service recipient will have to pay ST under RCM.
Thanks
An individual is exempted under SSI upto Rs. 10 lacs of service provided.
Moreover he shall issue Invoice without charging ST, service recipient will have to pay ST under RCM.
Thanks
28 December 2013
25%S.T shall be paid by service provider (only 25% shall be charged in the invoice) and 75% shall be paid by service receiver.
28 December 2013
what if service receiver is an individual?? how much ST does i hav to charge??
28 December 2013
the ans given above by all remains same in this case also.
28 December 2013
Sir in case the service receiver is an individual,reverse charge is not applicable.Whole of the service tax shall be paid by Service Provider i.e he shall charge the same in his bill.
28 December 2013
pls mention the relevant section is this regard?
28 December 2013
Please refer to the notification no. 30/2012.
(v) provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory;
Sir hope this clears your doubt
(v) provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory;
Sir hope this clears your doubt
28 December 2013
if u read carefully the question was relating to manpower supply and RCM and what u posted in your last message is regarding 30/2012 in relation to motor vehicle so its still not ans my question where it is mentioned for manpower supply not applicable for RCM to ind???
28 December 2013
Sir please refer to the manpower service in the below mentioned article.
https://www.caclubindia.com/articles/service-tax-reverse-charge-18466.asp
https://www.caclubindia.com/articles/service-tax-reverse-charge-18466.asp
28 December 2013
ok the final conclusion as per the link given by annu agarwal mentions in point 8 that in case of manpower supply if servcie rec is ind then it is not applicable to service rec.
Thanks for the link.
Thanks for the link.
29 December 2013
Hi Jay
When service receiver is individual then RCM is not applicable. But you still enjoy benefit of SSI and you can still raise NIL service tax invoice.
Thanks
When service receiver is individual then RCM is not applicable. But you still enjoy benefit of SSI and you can still raise NIL service tax invoice.
Thanks
29 December 2013
Agree with the views of annu agarwal
1)Service provider should charge only his part of service tax
2)Service receiver to pay service tax of his part by GAR-7 challan
3)Service receiver liable for only his part and not entire amount, even if service provider does not charge his portion of service tax.
.
.
@quriest
.
.
in case service receiver is other than business entity registered as body corporate reversecharge not applicable and hence service provider is responsible to collect full service tax and he is responsible to pay back this amount with government.
.
he should charge full servicetax in his invoice....however if service provider gross receipts not exceeded 10 lakhs in any year he dont need to collect service tax in this regard
.
.
Note:The small service provider exemption of ` 10 lakhs not available when tax is payable under reverse charge in case of service receiver.
.
.
1)Service provider should charge only his part of service tax
2)Service receiver to pay service tax of his part by GAR-7 challan
3)Service receiver liable for only his part and not entire amount, even if service provider does not charge his portion of service tax.
.
.
@quriest
.
.
in case service receiver is other than business entity registered as body corporate reversecharge not applicable and hence service provider is responsible to collect full service tax and he is responsible to pay back this amount with government.
.
he should charge full servicetax in his invoice....however if service provider gross receipts not exceeded 10 lakhs in any year he dont need to collect service tax in this regard
.
.
Note:The small service provider exemption of ` 10 lakhs not available when tax is payable under reverse charge in case of service receiver.
.
.
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