Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2013 In the case of Service Tax on Labour Supply, is reverse charge mechanism of paying service tax applicable if the service recipient is a partnership firm ?

Ganeshbabu K

Ganeshbabu K (Expert)
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05 June 2013 In case of supply of manpower service,

applicable if

service receiver is Business entity registered as body corporate located in the taxable territory,

meanings in above context..

“Business entity” means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession. Thus, Government, charitable organisation is not ‘business entity’.

¨ Body Corporate – Company, LLP, Cooperative Society is Body Corporate – Firm, HUF, Trust is not ‘Body Corporate’ [Society registered under Societies Act is legally not ‘body corporate’].

As per above it is applicable to you if you are LLP

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