Service tax bills manpower services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2012 Please guide about Service Tax Calculation on manpower services Sales Bills as per new changes in July 12 ( 25-75 ). Our Net bill of manpower services is Rs. 1,000,00/- Can we charged service tax on only 25% amount in bill Rs. 3090/- or can we charged full amount service tax Rs. 12360/-?

What is our liability in above case?

srinivasan

srinivasan (Expert)
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12 September 2012 Service tax has to be charged only to the extent of 25% of the total service tax liabilty (i.e. Rs.3090)

However, the above would be applicable only if the service provider is a individual, firm or HUF and the service receivder is a corporate.

In other cases, full tax i.e 12,360/- has to be charged in the invoice