hai friends
pls clarify abt a person supplying manpower to travels agent for a minimum of 200000 per month . is he liable to pay the service tax and if he is liable can he recover from the service reciever on all the bills relating to this financial year when he is getting registration now
Hi Prasad
A manpower recuitment agency is liable to pay service tax under section 65(105)(k) of the Finance Act 1994 w.e.f 7 July 1997.
So far a recovery of service tax from the service receiver is concerned, it is entirely a private matter between two parties and will be regulated by contractual obligations between the parties. Finance Act or Service Tax rules does not confer any legal rights on the service provider to recover service tax from the service receiver. In case service tax is not received seperatly by the service provider, the gross consideration will be treated as consideration inclusive of service tax and taxable value of the service will be computed accordingly.
Dinesh Agrawal
Khaitan & Co
Mumbai
9969375261
CAclubindia
