Regarding service tax applicable or reverse charge

This query is : Resolved

Rajnish (Querist)
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27 November 2012 Dear All,

Please take a note that, we are providing following service to our client,

- Software Development
- Translation Service
- Man Power Service

As per My knowledge Service tax Applicable for said service.

- Software Development - 12.36%
- Translation Service - 12.36%
- Man Power Service - 3.09% (25% of 12.36%)

I request to you, please clear rate of service tax,

I am waiting for your reply.

Regards
Rajnish

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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27 November 2012 Dear Rajnish,

If you are a Proprietorship firm/partnership firm and your client is a body corporate/company then the rates given by you are correct.
otherwise all rates would be 12.36%

Message likes : 1 times

Rajnish

Rajnish (Querist)
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27 November 2012 Dear Mr. Amit,

thanks for your quick reply.
Our Firm is Partnership.
If Plt. Ltd. then tax rate will change?
Please reply.
your co-operation will be highly appreciated.

Regards
Rajnish

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CA Sahil Singla..

CA Sahil Singla.. (Expert)
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28 November 2012 THe tax will change only in case Service receiver is a Compnany and that too in case of Manpower supply. If receiver is company, then pay tax on 25% value @ 12.36%. Otherwise pay 12.36% on 100% Invoice

Rajnish

Rajnish (Querist)
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28 November 2012
Dear Mr. Sahil,

Thanks for your reply.
but i have one more query.
suppose Pvt. Ltd. Company raise invoice to other Pvt. Ltd. company then tax rate is 12.36%
Service type is "Software Service"
2nd is query is
If Company Received service from Individual then company liable to pay service tax 75%? but individual turnover less then 10Lakh.

Please reply my query.
Regards
Rajnish

CA Sahil Singla..

CA Sahil Singla.. (Expert)
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28 November 2012 1. Yes tax is 12.36% in that case
2. Turnover of Individual does not matter. Tax payable on every Rupee under reverse charge