Service tax (rcm)

This query is : Resolved

RAVI KUNTE (Querist)
Follow

04 March 2014 sir my client started a new man power supply agencies at time of billing for pvt. ltd co. the liability of service tax is 3.09% but billing to other than Companies the liability of service tax is 12.36% or 3.09%......?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

04 March 2014 1. If service is provided BY an individual, HUF or partnership firm

TO a COMPANY then reverse charge is applicable.

In that case service tax liability will be borne as under:

Service provider - 25% (3.09%)
Service recipient - 75% (9.27%)

2. If service is provided to any other person then 100% liability is on the service PROVIDER. So you will charge full 12.36% in the invoice.

Message likes : 1 times