Reverse charge
This query is : Resolved
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.
what is the liability of Supreme Construction as service receiver.
Supreme collects Service tax from DPS Ltd. and paid in time as service provider.
26 June 2015
in 2014-15 you have to charge 25% of 12.36% service tax on the billing amount .
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.
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.
26 June 2015
in 2014-15 you have to charge 25% of 12.36% service tax on the billing amount .
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
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- GST rate and HSN code for sale of racing horses
- Eway bill generation from place other than registeted
- Management System (IMS)
- TDS Return Q1 FY 2026-27
- Condonation . E-Verification of last year return .
- DIN reactivation
- 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
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
