Reverse charge
Hitesh Choudhary (CA) (52 Points)
21 June 2013Hitesh Choudhary (CA) (52 Points)
21 June 2013
CA Smit Shah
(B.Com, M.Com, C.A)
(759 Points)
Replied 21 June 2013
Mr. Hitesh Choudhary,
Under reverse charge mechanisam it is duty of receiver of service to pay service tax. So if service provider has charged service tax then also its your liability to pay S.Tax on 75% value of service.
However if service provider is body corporate then there is no liability of service receiver in case of Man Power Supply so in that case S.Tax charged by service provider is correct.