Reagrding service tax revers charge

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This query is : Resolved

Rajnish (Querist)

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)

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)

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)

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)

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