CA SANDESH MAHIPAL (Practicing in GST and MSME ) (1985 Points)
14 September 2012A Limited Company has paid Rs.500000 to B Limited company for supply of manpower services.
Please tell me liability of service tax to be paid by both the limited companies.
Note:- Please consider Notification No.30/2012 dt. 20/06/2012 and the words Limited Company.
Thanks in Advance
Mallikharjun
(Deputy Manager)
(304 Points)
Replied 14 September 2012
B limited Company has to raise service tax bill on A limited company for supply of manpower service. A limited company has to pay bill amount (after deducting TDS) to B Limited company. B Limited company has to pay full amount of service tax to the government. There is no reverse charge mechanism under this transaction.
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