Exemption limit of service tax on reverse machenism

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vipin khandelwal (Querist)
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28 December 2012 Dear Seniors,

i am working in a company i received bills from Vendor of Van Hire & Manpower, they have not registered in service tax than we shuld pay service tax on reverse charge machenism behalf of vendor or Not.

CA Manish

CA Manish (Expert)
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28 December 2012 You have to pay your share of service tax irrespective of the fact that the provider is registered or not.

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vipin khandelwal

vipin khandelwal (Querist)
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29 December 2012 but how to calculate my share however vendor bill is without service tax and what about exemption limit of 10 lakhs.

my company hire commercial vehicle for advertising

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CA Manish

CA Manish (Expert)
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29 December 2012 The exemption limit of Rs 10 lac is not applicable to you for RCM.

Your share in case of motor car hire is 40% and in case of manpower supply is 75%.

So you have to calculate like this:- bill amount * 12.36% * % of your share.