08 November 2013
One of the my client is labour supplier in Co.He is not registered in Service tax.His last year's turnover is 1.10 cr.He as well as his co has not deducted st.who is liable for it ?if he want to pay st how much amount he has to pay ?
08 November 2013
The labour contractor is rendering Manpower Supply & Management Services. He is liable for registration as a service provider under that category since his turnover exceeds the threshold limit.
The status of your client has not been specified. Assuming he is not a body corporate - under the Reverse Charge Mechanism on Manpower Supply & Management Services he will be liable to pay ST on 25% of his billing @ 12.36% i.e on the turnover specified the ST would be about Rs.3.5 lakhs. This amount should be paid after registration inclusive of interest @ 18% per annum on daily basis.
The Service Recipients, especially bodies corporate would have paid 75% of the tax under Reverse Charge Mechanism.
Once again, as I have mentioned in other replies, ST is paid in addition to the remuneration for services rendered and it is not deducted from the billed amount. If service Tax is charged in the invoice, the same is paid by the service recipient to the service provider, who in turn deposits the same to the Treasury.
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