Smruti (CA) (183 Points)
13 March 2013Hello,
I am little bit confuse regading supply of man power service. Actually my quetion is whether the supply of utility boy, or service boy for a banquet party in a hotel industry comes under the perview of supply of man power service?
Please reply
Thank you
Asif Khan
(Taxation executive)
(410 Points)
Replied 13 March 2013
YES
IN terms of Notification No. 30/2012-ST dated June 20, 2012, the partial reverse charge mechanism is applicable, interalia, to services provided or agreed to be provided by way of supply of manpower for any purpose, by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as a body corporate located in the taxable territory.
Thus supply of utility boy or service boy for banquet paty though for temporary period is covered under Reverse Charge.
Smruti
(CA)
(183 Points)
Replied 13 March 2013
Thanks Asif,
if the party providing utility boys is not cahrging service tax in their bills, what will be the concequences
Asif Khan
(Taxation executive)
(410 Points)
Replied 13 March 2013
As per Reverse Charge the liability to pay service tax in vested upon the service reciever. So in this case you have to pay your portion of 75% of Service tax i.e 75% of 12.36% by reverse calculation of gross amount recieved.
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