Clarification about man power supply service

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2012 in the budget of 2012 abatement that 25% collected form who received service and 75% paid by who provided service,

So what it exactly means?

25% paid by receiver and 75% paid by service provider.?

Pratik Pankaj Shah

Pratik Pankaj Shah (Expert)
Follow

26 April 2012 When services are provided or agreed to be provided by any individual or partnership firm or HUF or proprietary firm to a comapany, then service tax burden would be shared by both Service receiver and provider. This mechanism is called as Reverse charge Mechanism.

25% by Service provider
75% by Service receiver.

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2012 thanks for advice.
but still one query is that challans are paid by receiver and provider separately?

Upgrade to CAclubindia Pro. Subscribe Now!