Payment of tax

This query is : Resolved

ASHWINI KHATRI (Querist)
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15 July 2013 Respected experts my client have registration under service tax act. he want to pay tax on menpower supply. he is service provider. how much he have to pay tax 25% of tax or complete 12.36%. please guide me.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 July 2013 Manpower supply covered under reverse charge method, service provider need to pay 25% only balance 75% need to pay service receiver

ASHWINI KHATRI

ASHWINI KHATRI (Querist)
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16 July 2013 sir, my client have already charged service tax by 12.36% in his invoice. In this case he have to pay complete charged tax or can he benefit of abutment of 25% of Tax.? please guide me. thank you.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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16 July 2013 Under reverse charge mechanism, if the service provider (i.e your client) is Individual, firm, then 25% is payable by him.

ASHWINI KHATRI

ASHWINI KHATRI (Querist)
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16 July 2013 kindly consider on my problem that assessee have collected 12.36% tax on manpower supply bill. Than he have to pay complete tax or not?

RENGARAJ R.K

RENGARAJ R.K (Expert)
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16 July 2013 In future he need to collect only on 25%.

Now the excess payment has to be deposited or pass a credit note for 75% of the service tax in favour of the party.

ASHWINI KHATRI

ASHWINI KHATRI (Querist)
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17 July 2013 thank you sir

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