Reagrding service tax revers charge

This query is : Resolved

Rajnish (Querist)
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28 November 2012 Dear All,

I have query related Service tax revers charge.

Point no. 1
If Partnership company received service from Individual then Service tax liable for Partnership company to Pay 75% (9.27%) of Bill amount of Individual?

Point no. 2
If Pvt. Ltd. company received service from Individual then Service tax liable for Pvt. Ltd. company to Pay 75% (9.27%) of Bill amount of Individual?

I am waiting for your reply.

Regards
Rajnish

Viral Vora

Viral Vora (Expert)
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28 November 2012 It seems you are talking about manpower services.

Q.1. If service receiver is partnership firm then liability of service tax is 100% on service provider.

Q.2. If service receiver is company then liability of service tax payment is 25% on service provider and 75% on service receiver.

Rajnish

Rajnish (Querist)
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28 November 2012 Dear Viral,

Please see my reply as below,

point 1
i am talking about software service, translation service except man power.
and individual not liable for Service tax bcz in turnover less then 10 lakh.

Point no. 2
Company received service from Individual and his turnover less then 10 lakh.

What is Scenario?
Please guide me.

reagrds
rajnish

Viral Vora

Viral Vora (Expert)
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28 November 2012 Software Services is declared service under clause d of section 66E.

In this case, basic exemption limit of Rs.10.00 lacs is available to individuals. Hence even though service receiver is company or partnership firm , there is no liability for payment of service tax. this service does not fall under reverse charge mechanism.

Rajnish

Rajnish (Querist)
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28 November 2012 Dear Viral,

Really thank for your reply and co-operate.

also note that, we are provided translation service and this service same rule applicable like Software Service.

Please reply.

Regards
Rajnish