asim jana (accounts head) (205 Points)
22 July 2013Dear Sir,
As per service tax notification on man power supply, A service reciver will deposit 75% of Service tax and 25% to be deposited by service provider. My question is that if the service provider does not have any service tax registration no. then the liability of service tax is applicable for service receiver? If yes then what is the percentage?
Asim Jana
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 22 July 2013
Explanation to reverse charge notification provides that tax liability of both service receiver and provider are different and independent of each other.
So, in case service provider is not paying tax because of small scale service provider exemp of Rs. 10 lacs........still service receiver is liable to pay his part because his liabilty is different and independent
So, in your case company/serv receiver is liable to pay 75% and service provider is not liable as he can claim SSP exemp benefit...
Arun Kumar Singh
(GST Advocate)
(15220 Points)
Replied 24 July 2013
Service provider is not registered with service tax department then also recipient will pay the service tax on 75% of the assessable value.
CAclubindia
