Partial reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2015 If a company is supplying manpower for security services, is service tax to be paid under partial reverse charge? Since service provider category does not include a corporate entity?

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2015 Also,is it mandatory under act that the service receiver has to pay 75% ? What if the service provider collects 12.36 % ST along with the invoice amt and he makes the payment to the government?

RENGARAJ R.K

RENGARAJ R.K (Expert)
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07 February 2015 Manpower supply for any purposes or security services by individual, HUF, firm or AOP. The liability is 25%.

If you are a Body corporate and if you are availing the services from the above category, you will have to discharge your share of 75% compulsorily and you can avail cenvat credit on such services based on the challan.

There are litigation going on when the service provider discharges 100% service tax.

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