21 August 2012
My co. got bill from manpower services co. I know that, when service tax to be deposited by the my co. (i.e. When bill accounted or when payment will done to the party)
Also, I know that what is the Journal Entry, when bill credited to the manpower services party.
21 August 2012
The question is not clear. However, as per my understanding. when a manpower supply agent gives a bill, he should charge servicetax @12.36% on 25% of his bill. After payment settlement, the service receiver has to pay 12.36% on the 75% of the bill, under reverse charge. This payment should be made in a separate challan and the same challan can be taken as cenvat credit document for set off.
25 August 2012
If you are receiving the services from registered pvt ltd company then only service provider will pay the service tax. you are receiving the services from individual, partnership registered or not or HUF then recipient will pay the service tax on reverse charge method. service tax will be payable by the point of taxation rules 2011.
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