Changes in service tax rcm from 1st april 2015

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Philip John (Querist)
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04 April 2015 I have two queries under this subject :

1. For manpower supply services provided during March 2015, but invoice submitted in April 2015, (and payment also being made in April 2015) will the old rule of partial reverse charge be applicable, OR the new rule of 100 % reverse charge be applicable ?

2. Earlier, in the case of manpower supply by a Limited Company, 100 % Service Tax was to be paid by SERVICE PROVIDER.(Partial Reverse Charge WAS applicable only if Service Provider was individual, HUF, proprietary or partnership firm or AOP). Now, under the new rules of Budget 2015, is 100 % Service Tax to be paid by the Service RECIPIENT under 100 % Reverse Charge mechanism, EVEN IF the Service Provider is a Limited Company ?

Thanks & regards::

Philip John

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 April 2015 1. Service provided in March hence old rule applicable.
2.For limited company new rule not applicable.

Manpower supply and security services when provided by an individual,
HUF, or partnership firm to a body corporate are being brought to full
reverse charge. Presently, these are taxed under partial reverse charge
mechanism.
This above changes in reverse charge mechanism will come into effect from the
1st day of April, 2015.

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Philip John

Philip John (Querist)
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05 April 2015 Thank you, Sir.

However, it seems that there is also a different opinion, in view of Point of Taxation Rules regarding applicability of new rules with respect to period during which service was provided.

Kindly check the link

https://taxguru.in/service-tax/impact-service-tax-manpower-supply-security-services.html

Further confirmation requested from experts in this regard.

Thanks & regard::
Philip John

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 April 2015 I confirm new rule applicable.

Invoice is issued on or after 01-04-2015 and payment is also made on or after 01-04-2015 Here following situations may arise: Invoice is raised within 30 days of date of completion of service – Clearly, service receiver will have to pay 100% Service tax.

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