Manpower supply services - partial reverse charge mechanism

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This query is : Resolved

CA Ayush Parekh (Querist)

08 January 2014 In manpower supply services , if the service provider charges service tax at 12.36% (i.e at full 100%), then is the service receiver still required to pay 75% of the service tax ?

CA Vikas Acharya

CA Vikas Acharya (Expert)

08 January 2014 do not pay to the provider whole 100%, as he has to deposit only 25% and your liability don't shift if he pay even 100%.
so better to avoid litigation, pay your liability directly to government.

but please consider the conditions of revers charge, whether you falling under the RCM or not. like you must be a body corporate he must be a individual/huf/partnership/prop/aop.

for details notification 30/2012 of service tax

CA Ayush Parekh

CA Ayush Parekh (Querist)

08 January 2014 the service provider has paid full 100%, is the service receiver still required to pay 75%

CA Vikas Acharya

CA Vikas Acharya (Expert)

08 January 2014 if he already paid. don't pay as there is a recent judgement in which the decision came in favor.. but as the judgement was on HC level, better to convince the provider by showing him the provisions of law for only paying his liability in future..
as u never know when judgement gets overruled.

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