06 August 2012
First of all, for the individual there is a registration limit of 10 lacs.
Answer: 1)After reaching/raising invoices for 9 lacs, he should get himself registered under the Act.
2) Without registration he should not collect and need not pay.
3) Service provider has to pay service tax 12.36% on 25% of the bill amount and service receiver will have to pay 75% of the bill amount under reverse charge.
4) The manpower supply agent will raise bill adding service tax 12.36% only on 25% of the bill amount. His liability ends there and SR has to pay his portion.
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