Sonam Seth Khanduja (Chartered Accountant) (112 Points)
13 April 2013MY QUERY IS ON APPLICABILITY OF REVERSE CHARGE MECHANISM IN FOLLOWING CASE:-
1. WHEN MANPOWER SUPPLY SERVICES ARE PROVIDED BY AN INDIVIDUAL TO PARTNERSHIP FIRM, THEN WHETHER REVESE CHARGE IS APPLICABLE OR 100 % SERVICE TAX IS TO BE PAID BY SERVICE PROVIDOR.
IF SERVICE RECIEVER & PROVIDER WRONGLY FOLLOW REVERSE CHARGE IN ABOVE MENTIONED CASE AND PAY 75%/ 25% OF SERVICE TAX, THEN WHAT ARE THE CONSEQUENCES.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 14 April 2013
No liability under reverse charge for the firm receiving. Deamnd maybe made on the service provider that he is to pay + interest + penalty.
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 16 April 2013
For Manpower Supply Service, reverse charge is applicable if the service receiver is a body corporate. So, in the above case, 100% service tax is to be paid by the service provider after availing baisic exemption benefit of Rs. 10 Lacs, if available. The department may raise demand for differential tax and levy interest and penalty.
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