Reverse charge applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2013 Dear Friends,

My question is that whether private limited company providing manpower supply services to other companies can take the advantage of paying service tax at 3.09% instead of paying at full rate i.e. 12.36%. Simply whether the benefit extended by the ST department by its recent notification covers a private limited company?

CA DHEERAJ

CA DHEERAJ (Expert)
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30 December 2013 No
if one Body corporate (service provider) provide service to another body corporate (service receiver) then no reverse charge mechanism apply in such case if service provider is liabel to pay tax @ 12.36% this reverse charge mechanasim apply only if indivisul, huf and firm provide service to body corporate then provider pay tax @ 3.09 %,

and body corporate includes private company also

Annu Agarwal

Annu Agarwal (Expert)
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31 December 2013 Agreed with expert that to avail the benefit of Notification 30/212,the service provider needs to be an
-individual
-HUF
-partnership firm
and the service receiver needs to be
-a body corporte (pvt ltd co or ltd co)

If any one of the above condition is not satisfied,No Partial reverse chare benefit available.

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