Reverse charge

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2016 A GOVT. PSU IS RECEIVING SERVICES FROM HUF FOR EXHIBITION PURPOSE TDS IS DEDUCTED @ 2% ON THE BILLED AMOUNT. SERVICES PROVIDED INCLUDES SERVICES WHICH ARE LIABLE FOR SERVICE TAX UNDER REVERSE CHARGE UNDER MANPOWER SUPPLY. SERVICES PROVIDED AMOUNTS MORE THAN 30 LACS. NOW MY QUERY IS WHETHER HUF SHOULD HAVE SERVICE TAX REGISTRATION SINCE PRESENTLY THEY DONT. HUF IS PROVIDING SERVICES WITHOUT ST REGISTRATION. IS THERE ANY LIABILITY ON PSU TO GET THEM REGISTERED OR SHOULD HAVE RECEIVED SERVICES ONLY FROM ST REGISTERED HUF SINCE TURNOVER IS MORE THAN EXEMPTION LIMIT.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 October 2016 No such conditions PSU can receive services from unregistered entity. 100% service tax payable under reverse charge for man power supply.

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2016 SAID FIRMS TURNOVER IS MORE THAN PRESCRIBED EXEMPTION LIMIT OF SERVICE TAX
HENCE IT CAN BE CONCLUDED THAT THEY ARE EVADING SERVICE TAX.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 October 2016 They may be providing services for which service tax payable under reverse charge. In such a case they are not evading Tax.

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