Reverse charge

This query is : Resolved

Madhab Chandra Mandal (Querist)
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26 June 2015 Supreme Construction ( Proprietorship) supplying Manpower to DPS Ltd. supreme received manpower from three Manpower supply agencies. During the year 2014-2015 Supreme paid Rs.28,00,000 ( without service tax ) to its manpower supply agencies because Manpower supply agency didnot charge service tax in their invoice.

what is the liability of Supreme Construction as service receiver.

Supreme collects Service tax from DPS Ltd. and paid in time as service provider.

Rupesh Jain

Rupesh Jain (Expert)
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26 June 2015 in 2014-15 you have to charge 25% of 12.36% service tax on the billing amount .

PAWAN KUMAR

PAWAN KUMAR (Expert)
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26 June 2015 Dear Sir,
As per my view, Supreme Construction is a proprietorship individual firm. The services which are being provided to Supreme Construction by other manpower agencies is not covered under reverse charge. In such cases the manpower agencies will be liable for 100% service tax on its bill.
No liability on Supreme Construction as service receiver.

Now Supreme Construction in turn provide service to DPS Ltd. In such case liability of service tax will be 25%/75%.
Supreme will charge service tax @12.36% on 25% amount as service provider.
Remaining service tax on 75% amount will be paid by DPS Ltd.

Rupesh Jain

Rupesh Jain (Expert)
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26 June 2015 in 2014-15 you have to charge 25% of 12.36% service tax on the billing amount .

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