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?
Rupesh Jain
(Expert)
22 June 2016
yes service tax applicable on the manpower @15%.
Ram Avtar Singh
(Expert)
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??
Rupesh Jain
(Expert)
23 June 2016
manpower supply RCM applicable on the body corporate only .
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