CA. Amit Khandelwal (Article) (78 Points)
25 July 2013Our Company pay service tax on GTA (Goods Transportation)
and pay to labour contractor around 5 Lacs and contractor raised bill without service tax because his income less than 10 lac
Whether he need to pay service tax on Labour Contractor or not under reverse charge whereas our company is service receipent in gcase of GTA
CA vinod
(Chartered Accountant)
(518 Points)
Replied 25 July 2013
As a service receipent of the manpower supply service you need to pay 75 % of the service tax under reverse cgharge mechanism. It is irrelavent whether the service provider is registerd or not.
CA Sandeep Soni
(Chartered Accountant)
(55 Points)
Replied 26 July 2013
In this cases services should be provided by any Individual, HUF, Proprietor Firm or Partnership Firms (Reg. or Not), AOP to BUSINESS ENTITY registered as BODY CORPORATE.
Notification No. 33/2012-ST Dated 20-06-2012 provides option to the SERVICES PROVIDER to avail threshold exemption limit of Rs. 10 Lakhs.
That means SERVICE RECEIVER will not get any exemption limit.
Hence service receiver under Manpower supply services has to pay 75 % of ST liability whether or not balance 25% paid by Service provider.
Also in case GTA, under reversed charged the 100% service tax would be payable by service receiver.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
