Business auxilary service

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2013 Hello,

We are a service recipient from our client who provide us service as BUSINESS AUXILIARY SERVICE of supplying Labour.
My question is that are suppose to pay Service Tax under Reverse Charge Mechanism i.e., 75% and 25% or we are not at all liable to pay service tax under RCM.

Please guide me with your valuable suggestions at your earliest.

CA Vikas Acharya

CA Vikas Acharya (Expert)

02 May 2013 depending on the nature of service
for business auxiliary service no rcm
but for supply of manpower service, there is taxable portion of 75% value for SR.

so you have to understand the nature of service.
so ask your service provider in which head he is paying the tax.
according to me:
supply of labour is not covered under business auxilary service.
though it may cover under manpower supply service.

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2013 Dear Vikas..
Thanks for your reply.....
We have checked the SP service tax registration certificate and it is mentioned that he is registered as BAS provider...and he is providing his labour to us for repairs work.....now my question is that would it be charged under RCM as supply of man power or not and if not then will SP bear the entire liability of ST??

Please advice.

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