Clarification about man power supply service


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Querist : Anonymous

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Querist : Anonymous (Querist)
26 April 2012 in the budget of 2012 abatement that 25% collected form who received service and 75% paid by who provided service,

So what it exactly means?

25% paid by receiver and 75% paid by service provider.?


26 April 2012 When services are provided or agreed to be provided by any individual or partnership firm or HUF or proprietary firm to a comapany, then service tax burden would be shared by both Service receiver and provider. This mechanism is called as Reverse charge Mechanism.

25% by Service provider
75% by Service receiver.


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Querist : Anonymous

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Querist : Anonymous (Querist)
29 April 2012 thanks for advice.
but still one query is that challans are paid by receiver and provider separately?


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