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 .
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