we are running a business with partnership firm Know we are providing 10 people to on e the private company and payment for employee will be paid by us mean time company will refund the employee salary to our firm my question is whether we need to pay the service tax or not If so how much % to pay by us and how much % from pvt company What is the procedure to pay the ST.
31 July 2013
The service provided by you is covered under service tax as "supply of manpower for any purpose".
As per Notification No. 30/2012-Service Tax dated 20/6/2012 reverse charge is applicable to this service, as per this 25% of the service tax is payable by the service provider and 75% of the tax is payable by the service receiver.
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