Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2015 One vender (Proprietor Firm) providing us Housekeeping service and charge full service tax (14%) to us and we are paying same to him and they deposit the same to the department. This is correct or not.

Any, service tax liability rise upon us? (As per under reverse charge mechanism)

Please update for the same.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2015 No reverse charge mechanism applicable, your vendor is charging service tax rightly.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2015 Sir,

Please explain above your answer and which type service come under reverse charge mechanism.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2015 RCM applicable for works contract and man power supply and service receiver is company. House keeping service may not fall under this category. If it falls and you are a company then RCM applicable.