Service tax on man power supply
This query is : Resolved
02 September 2013
Dear Sir,
I have referred about my query previously asked by somebodies in our site. According to that what i understood is
Bill by Man Power supplier
100 emp x 1000=100000
S.tax 12.36% =12360
Total Bill Amount=112360
In Tax amount 12360- 75%=9270 to be paid by the contract receiver
remaining 25% of Tax amount 3090 to be paid by the service Provider.
Dear all please confirm whether i understood right or wrong if not please explain me.
i'm expecting your valuable replies.
I have referred about my query previously asked by somebodies in our site. According to that what i understood is
Bill by Man Power supplier
100 emp x 1000=100000
S.tax 12.36% =12360
Total Bill Amount=112360
In Tax amount 12360- 75%=9270 to be paid by the contract receiver
remaining 25% of Tax amount 3090 to be paid by the service Provider.
Dear all please confirm whether i understood right or wrong if not please explain me.
i'm expecting your valuable replies.
02 September 2013
this calculation is correct in the case if
Service provider is - Individual, HUF, Proprietary firm, Partnership firm and
Service receiver is - Business entity registered as body corporate.
Service provider is - Individual, HUF, Proprietary firm, Partnership firm and
Service receiver is - Business entity registered as body corporate.
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02 September 2013
this calculation is correct in the case if
Service provider is - Individual, HUF, Proprietary firm, Partnership firm and
Service receiver is - Business entity registered as body corporate.
Service provider is - Individual, HUF, Proprietary firm, Partnership firm and
Service receiver is - Business entity registered as body corporate.
02 September 2013
In the reverse charge mechanism, Man power contractor has to charge 25% of the total service tax and he will raise the bill for Rs. 100000+3090. Balance service tax paid by the service receiver company. If manpower contractor is public or private limited company, in that case there is no liability of service receiver. Your concept is correct. Hope you understand.
Pardeep Khaneja
Pardeep Khaneja
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02 September 2013
Dear Pardeep Khaneja Thanks for ur reply,
In my case Service Provider is a partnership firm, Service recipient is a proprietor concern. 1st invoice they have already raised
like Rs.100000+3090(25%)=103090
but i said to them to raise a bill like
Rs.100000
S.tax-12360(100%)
Total =112360
but the receiver will pay 109270(75% S.Tax)
remaining 25% of S.Tax to be paid by the service provider from his hand.
Is that right kindly confirm me.
In my case Service Provider is a partnership firm, Service recipient is a proprietor concern. 1st invoice they have already raised
like Rs.100000+3090(25%)=103090
but i said to them to raise a bill like
Rs.100000
S.tax-12360(100%)
Total =112360
but the receiver will pay 109270(75% S.Tax)
remaining 25% of S.Tax to be paid by the service provider from his hand.
Is that right kindly confirm me.
02 September 2013
Dear Gurunathan
Position is reverse, 75% borne by Service Receiver and 25% Service tax borne by Service provider.
Service provider will raise bill for Rs. 103090 only. but you have to calculate balance service tax i.e. 75% of total service tax and deposit to government and take credit for the same on the basis of service tax challan.
Service provider having only responsibility to charge service tax upto 25% on bill. He will not charge full service tax.
Position is reverse, 75% borne by Service Receiver and 25% Service tax borne by Service provider.
Service provider will raise bill for Rs. 103090 only. but you have to calculate balance service tax i.e. 75% of total service tax and deposit to government and take credit for the same on the basis of service tax challan.
Service provider having only responsibility to charge service tax upto 25% on bill. He will not charge full service tax.
02 September 2013
Dear pardeep,
Kindly clarify the below from your reply:
you have to calculate balance S.Tax i.e.75% of total S.Tax and deposit to government and take credit for the same on the basis of service tax challan.
Kindly clarify the below from your reply:
you have to calculate balance S.Tax i.e.75% of total S.Tax and deposit to government and take credit for the same on the basis of service tax challan.
02 September 2013
Total Service Tax 12360
75% of 12360 = 9270/-
You will pass entry in books at the time when you received the bill
Manpower (Wages) A/c Dr. 100000
Service Tax A/c Dr. 3090
To Contractor a/c 103090
Another Entry
Service Tax on Reverse Charge Dr. 9270
To Service Tax Payable A/c 9270
Another Entry at the time of Payment
Service Tax Payable A/c Dr. 9270
To Bank A/c 9270
Entry for Taking Credit after payment
Service Tax Credit A/c Dr. 9270
To Service T on Reverse Charge 9270
It is simple calcuation.
75% of 12360 = 9270/-
You will pass entry in books at the time when you received the bill
Manpower (Wages) A/c Dr. 100000
Service Tax A/c Dr. 3090
To Contractor a/c 103090
Another Entry
Service Tax on Reverse Charge Dr. 9270
To Service Tax Payable A/c 9270
Another Entry at the time of Payment
Service Tax Payable A/c Dr. 9270
To Bank A/c 9270
Entry for Taking Credit after payment
Service Tax Credit A/c Dr. 9270
To Service T on Reverse Charge 9270
It is simple calcuation.
02 September 2013
Contractor is not bound more than 25% of service tax. He will charge only 25% portion of service tax in his bill
Balance 75% service tax you have to calculate and pass entries in your books.
Balance 75% service tax you have to calculate and pass entries in your books.
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