What will be the treatment of service tax
This query is : Resolved
27 January 2015
if both service provider as well as service recipient are corporate bodies. whether reverse charge machanism applicable or not. who has to pay the service tax ?
27 January 2015
man power supply sir
27 January 2015
In case of Sponsorship Services provided in Taxable territory RCM is applicable.
In this case service Receiver has to pay sevice tax whether both service provider and service receiver are corporate bodies.
In this case service Receiver has to pay sevice tax whether both service provider and service receiver are corporate bodies.
27 January 2015
Supply of manpower has been brought into partial reverse charge mechanism vide Notification No. 30/2012-ST dated June 20, 2012 and made applicable, inter alia, to services provided or agreed to be provided by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as a body corporate located in the taxable territory.
Further, security service is also brought under partial reverse charge mechanism vide Notification No. 45/2012-ST dt. 7th August, 2012 under the category of supply of manpower or security service. In terms of the definition inserted vide Notification No. 46/2012-ST dt. 7th August, 2012 "security services" means services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity.
In terms of the Notification No. 30/2012-ST dated June 20, 2012, 75% of the service tax liability is required to be discharged by the service recipient i.e. Business entity registered as a body corporate for the above services and Balance 25% by the service provider.
Further, security service is also brought under partial reverse charge mechanism vide Notification No. 45/2012-ST dt. 7th August, 2012 under the category of supply of manpower or security service. In terms of the definition inserted vide Notification No. 46/2012-ST dt. 7th August, 2012 "security services" means services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity.
In terms of the Notification No. 30/2012-ST dated June 20, 2012, 75% of the service tax liability is required to be discharged by the service recipient i.e. Business entity registered as a body corporate for the above services and Balance 25% by the service provider.
27 January 2015
thank you very much sir for your immediate clarification
Guest
Guest
(Expert)
27 January 2015
All the service tax shall be charged by service provider for manpower services provided by body corporate (Company or LLP). So in your case, recipient is not liable for service tax under RCM.
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