Reverse charge mechansim rule

This query is : Resolved

Preety Israni (Querist)
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28 November 2012 Is service tax to be charged at 3.09% on the bill amount if an assessee provides manpower services to a bank? And at what amt. is to be TDS deducted by the service receiver- whether
including service tax(@3.09%) or without including service tax?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 November 2012 1. Partial reverse charge is applicable on manpower supply services if the service provider is an individual or HUF.

In such case liability of service tax is as follows:

Service provider - 25%
Service recipient - 75%

Accordingly service provider will charge service tax @ 3.09%

2. TDS u/s 194C shall be deducted on the total invoice amount (including service tax).