respected sir.
my query is relating service tax abatement regarding manpower services
howe much percent company have to pay government and how much to service provider.
and what about credit availment
5 Replies
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 30 July 2012
It is reverse tax mechanism. Service provider 25% and service receiver 75%. Cenvat credit is admissible if it relates to manufacture of dutiable goods or providing of taxable services.
Aiyan
(Accountant)
(53 Points)
Replied 06 August 2012
Sir
How much input credit is claimable in such a case by the Service Receipent. And If the Service Provider is an individual who is under exemption within 10 L limit
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 06 August 2012
If the service provider is exempted from charging service tax, you pay 75% to Govt.
The payment is to be made in Cash and not through cenvat credit utilisation.
But once you pay in cash, then you can avail cenvat credit.
Regards,
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 06 August 2012
Yes, under reverse charge mechanism, the basic exemption of threshold limit is applicable only to service provider and not to service receiver. He has to pay under separate challan and set off in other output services.
Nilesh
(xxx)
(24 Points)
Replied 03 October 2012
Dear Sir
agreed service receiver has to pay 75%. and service receiver can avail the credit of the same. Now the same credit can be utilised against service tax payable on manpower (75%) next month ?
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