If Mr.X provides manpower to me on some lump some basis (say Rs.40,000).
Such vendor is not registered under service tax.
Then what is the amount of service tax to be paid as a service receiver?
1. Whether 75% or 100% of the service tax to be paid(since the provider is not registered for service tax)?
2. Which amount should be considered for calculating service tax: i.e., on Rs.40000*(75% or 100%) or Rs.40000*(75% or 100%)/112.36 [i.e., should be charged directly or on reverse charge basis]
17 September 2012
First of all if you are body corporate then only liable under reverse charge- ST will be 40000*12.36%*75% i.e 3708 will be paid by you to the govt.
CAclubindia
