Service tax

Dear Sir,

Service Tax new rule of w.e.f. 01.07.2012 for manpower supply we would like to know that we are receiveing the manpower services hence we have to pay 75% service tax to govt. or to the contractor.

Dear Ashok,

75% of service tax will be paid to the government and 25% will be paid by the contractor itself but he will charge that 25% from you.

If you are receiving services from an Individual/firm/LLP, then the reverse charge mechanism shall apply. Also, you need to be a body corporate as a service recipient. 

If these are satisfied, then you would pay 75% to the govt. and take credit of the same.