Registration under service tax act
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 November 2013
X is a service provider of manpower. W.e.f. 01.07.12, under reverse mechanism, service receiver has to create a liability of 75% of applicable service tax rate and avail credit thereof. balance 25% of applicable service tax rate shall be charged by the service provider on the bill and shall be reimbursed by the service receiver to the service provider. If in the instant case, X does not cross the threshold required for registration, then
1.) would he still be required to charge 25% of the applicable service tax rate to the service receiver on the bill?
2.) Since the limit for registration has not been crossed or is not likely to be crossed during the financial year and 25% of the applicable service tax is not charged on the bill, would it amount to violation of service tax provisions by the service provider?
Can somebody throw light on this issue?
Thanks in advance.
1.) would he still be required to charge 25% of the applicable service tax rate to the service receiver on the bill?
2.) Since the limit for registration has not been crossed or is not likely to be crossed during the financial year and 25% of the applicable service tax is not charged on the bill, would it amount to violation of service tax provisions by the service provider?
Can somebody throw light on this issue?
Thanks in advance.
27 November 2013
Answer to both your questions is no from service provider perspective.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Consolidated financials
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Putting a heading on received mail
- Foreign lottery ticket bought online from India: legality, tax and consequences
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Section 50-fixed asset-->building ceases to exist
- Withdrawal in cash from partners capital account by partner
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
