applicability of service tax on manpower supply
This query is : Open
22 June 2016
Contractor is supplying manpower to local bodies under yearly contract.Whether service tax is applicable or not?
22 June 2016
yes service tax applicable on the manpower @15%.
22 June 2016
If service provider is Individual, HUF, proprietary firm, partnership firm or AOP located in taxable territory and service receiver is a business entity incorporate as body corporate located in taxable territory; Reverse charge mechanism will apply.
If service receiver is located in non taxable territory or charity or non profit organization, government;reverse charge mechanism will not apply.
Under reverse charge, service receiver is liable to pay service tax on 100% of the value and service provider is not liable to charge or pay service tax to government. ( Changes in budget 2015) . Service tax on manpower supply is covered under full reverse charge mechanism. Now service Tax 14%+Swachh Bharat Cess 0.5%+Krishi Kalyan Cess 0.5%=15% appliaclble
If service receiver is located in non taxable territory or charity or non profit organization, government;reverse charge mechanism will not apply.
Under reverse charge, service receiver is liable to pay service tax on 100% of the value and service provider is not liable to charge or pay service tax to government. ( Changes in budget 2015) . Service tax on manpower supply is covered under full reverse charge mechanism. Now service Tax 14%+Swachh Bharat Cess 0.5%+Krishi Kalyan Cess 0.5%=15% appliaclble
22 June 2016
sir here service receiver is local body then reverse charge will not be attracted??
23 June 2016
manpower supply RCM applicable on the body corporate only .
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Value of property in capital gain
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
