MaNThaN Shah (Student) (315 Points)
01 January 2013
Nirav Worah
(CHARTERED ACCOUNTANT)
(396 Points)
Replied 01 January 2013
You need to pay service tax under the same accounting codes in which you are paying as service provider. It is advisable to make payment through seperate service tax challans.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 02 January 2013
HI,
First of all if service of manpower supply received from company, service tax liability under reverse charge mechanism doesnt not apply. Further, accounting codes for service tax on manower supply service is same irrespective of mode of collection of service tax. Thus, evena single challan would suffice. Thus even a part of service tax liability under manpwer supply is nder reverse charge and other as a service provider, you can pay the same by single service tax challan.
Thanks and Regards,
Manoj B, gavali
mehul
(ca final student)
(83 Points)
Replied 08 January 2013
hi
summary of reverse charge is attached .
this will help to make payments under reverse charge.
mehul
(ca final student)
(83 Points)
Replied 08 January 2013
General notes
1) If Service Provider is a Corporate entity (Except Sponsorship Service and Goods Transport agency) then given provisions will not apply.
2) For Sponsorship and Goods Transport Agency service, the below provisions shall apply even if the service provider is a Corporate Entity.
3) If Corporate entity is charging full amount of Service Tax then we can take full amount of set-off.
Points to be remember by Payments Team.
The extent of service tax payable thereon by the person who provides the service and the person who receives the service for the taxable services specified in (I) shall be as specified in the following Table, namely:-
Table
|
Sl. No. |
Descripttion of a service |
Service Provider : Individual , Partnership Fir, HUF, AOP |
Service Recipient : Company or business Entity registered as body corporate |
|
1 |
in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road |
Nil |
100% |
|
2 |
in respect of services provided or agreed to be provided by way of sponsorship |
Nil |
100% |
|
3 |
in respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services |
Nil |
100% |
|
4 |
in respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 |
Nil |
100% |
|
5 |
(a) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business (b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non-abated value to any person who is not engaged in the similar line of business |
Nil
60% |
100 %
40% |
|
6. |
in respect of services provided or agreed to be provided by way of supply of manpower for any purpose |
25% |
75 % |
|
7. |
in respect of services provided or agreed to be provided in service portion in execution of works contract |
50% |
50% |
|
8 |
in respect of services provided or agreed to be provided by an arbitral tribunal |
Nil |
100% |
|
9 |
in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory |
Nil |
100% |
Explanation:
1) If we are procuring service of transporter for transporting any goods from one place to another by road then person who provides service is not liable to pay service Tax but who receives service is liable to pay Service Tax.(i.e. Employees Relocation Expenses)
2) In case of service of sponsorship Service Tax is payable by a person who receives service of sponsorship. Say Advertisement agency is receiving sponsorship service for any event in that case advertisement agency is liable to pay Service Tax.
3) In case of Service provided or agreed to be provided by individual advocate or a firm of advocate by way of legal service then liability of discharging Service Tax is on Corporate. If any Service Tax is charge by them then do not book service tax portion from invoice raised by them.
4) In case of Support service provided by Government or local authority to us (for eg, we are in business of event management which requires Police protection or R.T.O. support for traffic). Service tax shall be payable by us on the fees charged by Police.
5) Renting of motor vehicle:
- Abatement taken-: if service provider is taking abatement for his services then liability to pay Service Tax on the abated value lies with Service receiver. i.e.
Invoice Amount : 10000/-
Abated Value(40%) 4000/-
S.T.on 4000/-: 494/-
-----------
Rs 494/- to be paid by the service recipient.
- 5B) Abatement not taken : if service provider is other than company and he is charging Service Tax @ 12.36% without claiming abatement then Service receive have to book invoice as example given below and balance liability(40% of the service tax) discharge by service recipient at the time of making payment.
Invoice Amount : 10000/-
60% S.T. : 741/-
-----------
Total : 10741/-
=======
6) Supply of manpower :
Service Provider will pay 25%
Service Recipient will pay 75%
(Situation explained as per point no 5B)
7) Works contract :
Service Provider will pay 50%
Service Recipient will pay 50%
(Situation explained as per point no 5B)
8) If any person resident of non-taxable territory ie out of india or J&K providing Taxable service to recipient of service in India , the Indian recipient is liable to pay service tax.
Other than above 1 to 8 points
9) At the time of making payments to foreign vendors we have to pay service tax on foreign payments before end of the month and after that we can take the set off at the time of actual Service Tax liability.
10) Other than Rent, Electricity & maintenance of premises we have to take a bill in the name of respective companies otherwise any debit note will be liable for service tax.
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