Manpower and rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2013 i receive manpower services so i pay service tax and also i receive rent charges.so, should i charge service tax on rent??? apart from this can i take 25:75 ratio service tax for setoff i.e., 100% service tax.

Ganeshbabu K

Ganeshbabu K (Expert)
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12 September 2013 See you need to pay service tax on gross amount charged in manpower supplier bill
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if you are collecting rent charges just pass credit note to his account,,no service tax should touch this amount

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2013 YOU MEAN TO SAY THAT I SHOULD PASS CREDIT NOTE TO MANPOWER SUPPLIER FOR RENT 'S SERVICE TAX WHAT I COLLECT ON RENT.

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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12 September 2013 "I" means, you are a service receiver under what category, individual, firm or company?

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2013 WE HAV PVT.FIRM.I PAY LABOUR CHARGES TO CONTRACTORS AND I HAVE LETOUT OFFICE ON RENT.

Ganeshbabu K

Ganeshbabu K (Expert)
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12 September 2013 In my opinion service tax on Rent is not applicable on rent charges that you collecting from manpowersupply

so i said simple pass credit note for rent charges collected,,and payd service tax on gross amount charged in manpower bill

Ganeshbabu K

Ganeshbabu K (Expert)
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12 September 2013 NO reversecharge applicable if you are partnership firm,,,reversecharge applicable only if you are company (pvtltd or ltd) or LLP,,for rest no service tax applicable as a service receiver,
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and reversecharge not applicable if you receiver services from LLP or COMPANIES

And i under stood that you are collecting rent from manpower contractor

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2013 BOTH ARE DIFFERENT I HAVE LETOUT PROPERTY TO MY OTHER CO.S AND FROM THEM I RECEIVE RENT CHARGES .
ANOTHER THING IS THAT I PAY CONTRACTORS CHARGES TO PARTNERSHIP FIRM AND INDIVIDUALS AS I RECEIVE SERVICES FROM 2,3 CONTRACTORS.THESE CONTRACTORS ARE INDEPENDENT. AS 18 IS NOT APPLICABLE TO MY CO.S.

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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12 September 2013 1) reverse charge is not applicable to you.

2) Rent from immovable property for commercial purpose is applicable if such income crosses 10 lacs (incl other services provided by you, if any) in a year.