19 June 2014
We are manufacturing pvt. Ltd. company having 30 labour on contract at on their own capacity whose total contract value per year does not exceed 1.20 lacs each contractor and they are raising their bills p.m. without service tax being small service provider now we are liable to pay service tax on receipt of service under reverse mechanism under service from man power supply.
19 June 2014
Yes as per RCM relevant Notification.Your company is liable to pay service tax on your share of charged amount that is 75% of the monthly invoice of each and every contractor.As all contractors are individuals and yours isthe company.THEY ATE EXEMPTED FROM PAYING SERVICE TAX AS THEIR TOTA EARNING IS LESS THAN RS.10 LACKS BUR YOU COMPANY IS NOT.THERE IS NO EXEMPTION WHEN THE PERSON IS LIABLE TO PAY SERVICE TA AS SERVICE RECEIVEER.TKS CA SAGAR MAL PAREEK 9824346469 smpfca @gmail.com
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