Persons covered under reverse charge
This query is : Resolved
23 August 2013
whether reverse charge will apply, in case of service bill for supply of man power by individual to LLP
whether reverse charge will apply, in case of service bill for supply of man power by individual to LLP
23 August 2013
Yes,,Reversecharge applicable if LLP is receiving supply of manpower service..
As Notified by department of revenue vide Notification No. 30/2012-Service Tax ,,,
it is informed that if "business entity registered as body corporate " received service of manpower supply from individual ,,service receiver supposed to pay 75% service tax under his registration number
So As LLP comes to definition of "business entity registered as body corporate" LLP is mandatorily required to follow the provisions of reversecharge
.
.
And duly it supposed to pay 75% of service tax to department..
As Notified by department of revenue vide Notification No. 30/2012-Service Tax ,,,
it is informed that if "business entity registered as body corporate " received service of manpower supply from individual ,,service receiver supposed to pay 75% service tax under his registration number
So As LLP comes to definition of "business entity registered as body corporate" LLP is mandatorily required to follow the provisions of reversecharge
.
.
And duly it supposed to pay 75% of service tax to department..
23 August 2013
For reverse charge, the SSI threshold limit exemption is not available to service receiver. ST is payable by service receiver, even if the service provider is in SSI limit.
23 August 2013
Dear sir,,i do agree with your views on reverse charge..
But under Notification No. 25/2012-Service Tax (applicable from 1july,2012) called as mega exemption notification has pointed following for advocate services,
Sub clause (b) of clause 6 of the Notification provides as follows,,
Exemption from service tax is available for services provided by:-
"
(b) an individual as an advocate or a partnership firm of advocates by way of legal services to,-
(i) an advocate or partnership firm of advocates providing legal services ;
(ii) any person other than a business entity; or
(iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year
With the above subclause in said notification
.
.
It says clearly that if the receiver of legal services is business entity with a turnover exceeding 10 lakhs during previous financial year mega exemption under notification 25/2012 is not available
.
.
In other words if the turnover of business entity is up to 10 lakhs then service tax is exempt for both receiver and provider of legal services..
.
.
Hence My reply as above stands correct!!!
But under Notification No. 25/2012-Service Tax (applicable from 1july,2012) called as mega exemption notification has pointed following for advocate services,
Sub clause (b) of clause 6 of the Notification provides as follows,,
Exemption from service tax is available for services provided by:-
"
(b) an individual as an advocate or a partnership firm of advocates by way of legal services to,-
(i) an advocate or partnership firm of advocates providing legal services ;
(ii) any person other than a business entity; or
(iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year
With the above subclause in said notification
.
.
It says clearly that if the receiver of legal services is business entity with a turnover exceeding 10 lakhs during previous financial year mega exemption under notification 25/2012 is not available
.
.
In other words if the turnover of business entity is up to 10 lakhs then service tax is exempt for both receiver and provider of legal services..
.
.
Hence My reply as above stands correct!!!
25 August 2013
Dear Ganeshbabu, i have endorsed your view only. Please again see my reply above. Since the query relates to manpower, i agreed your first reply only.
regards,
regards,
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