Service tax on manpower supply

This query is : Resolved

PAVAN RAJPUROHIT (Querist)
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10 July 2012 dear all

i have query regarding service tax on manpower supply

i have received manpower supply from mr. x and he charged rs. 20/- for each manpower supply by him. his invoice shows
total labour for month 1000X Rs.200= 200000
supply charges charges 1000XRs20. = 20000
service tax on 220000/-@12.36% = 27192
total bill amount rs. 247192

than at what amount i have to pay service tax on manpower supply being a receiver of service.

whether it is cascading or not

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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10 July 2012 Dear Mr. Pawan,

The service tax on bill wil be 25% of 12.36% and not total, balance service tax i.e 25% you will have to pay to govt directly.

PAVAN RAJPUROHIT

PAVAN RAJPUROHIT (Querist)
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10 July 2012 sir plz clarify

whether i have to pay service tax on
247192 X 25% X 12.36%

or

only on manpower supply charges i.e.

20000 X 25% X 12.36%

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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10 July 2012 Mr. Pavan,
The reverse charge applies where if supply of manpower of manpower temporarily or otherwise to other person to work under his superintendence or control. Accordingly, all type of cases whether supplied for casual work or cleaning work or security work, etc will cover under the definition and service reciever will be liable for the dischargement of 75% liability.

Accordingly, you will have to look at the facts.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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10 July 2012 If your bill is a composite bill it means it is labour work/job work and not manpower service.

PAVAN RAJPUROHIT

PAVAN RAJPUROHIT (Querist)
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10 July 2012 yes it is labour contractor
in that case i have to pay service tax on
rs. 247192 X 75% X 12.36%

or Rs. 20000 X 75% X 12.36%

second thing the contractor also charges the service tax on it bill.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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10 July 2012 Then you are not liable for service tax on reverse charge basis

PAVAN RAJPUROHIT

PAVAN RAJPUROHIT (Querist)
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10 July 2012 that means if contractor is charges service tax in that case we are not liable to pay service tax.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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10 July 2012 Yes.. he will be liable for whole amount but he will collect from you only

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