pppppppp (Partner) (53 Points)
21 July 2012Suppose Supplier (of Labour) is Sending labour of Rs. 2 lac to a Corporate Entity and he is clamming that he is not liable to deduct Service Tax and also does not have Service Tax Registration as he is coming under SSI defination of Service Tax. Then whether a corporate entity is liable to deduct Service Tax ?
Rakshit
(practising)
(338 Points)
Replied 22 July 2012
Corporate entity is liable to pay service tax on 75% of the value of taxable service i.e. Rs. 2 lakhs. The liability of the service recipient is independent of the liability of the service provider. It is immaterial if the service provider is claiming SSI exemption or not, the service recipient has to discharge his liability.
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 22 July 2012
Yes, the service recipient has to pay the applicable service tax on reverse charge. He has to use separate challan for this service and the same challan can be used as input service for his other output services, provided such services have the nexus.
punna laxmi narayana
(account executive)
(21 Points)
Replied 30 July 2012
can you explain me than what will the invoice raised by the supplier (manpower) to receiver (corporate - ABC CO.,)
BILLING TERMS
ABC CO-------------------------100000
SERVICE CHARGE ------- 10000
-----------------------
1,10,000
SER.TAX (12%) 13200
EDU CESS(2%) 264
HIGH EDU (1%) 132
------------------------------
1,23,596
--------------------------------
Please explain me the billing terms is this correct, i need to charge 25% in 12.36% of service tax
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 01 August 2012
The manpower agency has to collect service tax on 25% of his bill amount, and the balance partial 75%will be payable by the service receiver if he falls under company list.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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