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Payment of service tax by service receiver

CA Dinesh (Employed) (96 Points)

14 September 2012

As per the service tax notification: 30/2012 - In case of supply of manpower, the service receiver has to pay the service tax @ 75% and service provider will pay remining 25%.

we are trading company and we don't have any output service tax liability. Can anyone answer my following queries:

1. under which head we should pay the 75% of service tax

2. under which service tax accounting head we should deposit these payment (ST, Edu.Cess etc while uploading the payments in bank portal).

Thanks in advance.

Regards

Dinesh

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6 Replies

Mallikharjun (Deputy Manager) (304 Points)
Replied 14 September 2012

If any individual/PF/HUF/other than company provides "Supply of manpower" service to a company, then Company shall pay service tax under reverse charge mechanism.

You need not classify the nature of service under any Head in the challan.

Common codes for payment of service tax are

Service tax - 00441089
Education cess - 00440298
SHE Cess - 00440426

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Vikas (CA) (1135 Points)
Replied 14 September 2012

Dear friend,

New Accounting codes have been issued by the CBEC vide Circular No.161/12/2012 dated 06.07.2012 according to which the codes would be :

For normal Taxes : 00441089

Other payments(Interest, etc.) : 00441090;

For Education Cess : 00440298

For SHEC : 00440426;

For Penalties : 00441093.

I hope this is suffice to your requirements.

1 Like

CA Dinesh (Employed) (96 Points)
Replied 15 September 2012

Originally posted by : CA Dinesh

Thanks Friends.

CA Dinesh (Employed) (96 Points)
Replied 15 September 2012

Thanks Friends.

vyjayanthimala (Accounts) (245 Points)
Replied 17 September 2012

Originally posted by : Mallikharjun
	If any individual/PF/HUF/other than company provides "Supply of manpower" service to a partnership firm then what is the percentage of service tax payable by the service receiver ?

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Vikas (CA) (1135 Points)
Replied 27 September 2012

No service tax liability is required to be discharged under reverse charge mechanism for Supply of manpower servces, if the service recipient and service provider both are non-body corporates...