Reverse charge mechanism
This query is : Resolved
02 January 2014
i have a service tax query.
v r a company and v r receiving manpower supply service from an individual. Further, bill was of rs10000 but no service tax was charged by service provider since he was availaing threshold limit of 10lac therefore he didnt charge any service tax.
However on receipt of bill v paid the service provider 10000 and v also pay our liablity under reverse charge of 75% service tax ie rs927 to govt department and took cenvat credit of 927.
My query is if service provider is covered under reverse charge ie man power supply can he avail threshold limit of 10lac.
Regards,
Piyush Agarwal
v r a company and v r receiving manpower supply service from an individual. Further, bill was of rs10000 but no service tax was charged by service provider since he was availaing threshold limit of 10lac therefore he didnt charge any service tax.
However on receipt of bill v paid the service provider 10000 and v also pay our liablity under reverse charge of 75% service tax ie rs927 to govt department and took cenvat credit of 927.
My query is if service provider is covered under reverse charge ie man power supply can he avail threshold limit of 10lac.
Regards,
Piyush Agarwal
02 January 2014
Yes,service provider can avail threshold limit exemption but service receiver cannot
02 January 2014
Yes,service provider can avail threshold limit exemption but service receiver cannot
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02 January 2014
Thank you sir. But can you provide me any source where it is written service provider can avail threshold limit in case of partial reverse charge mechanism (specific services like supply of manpower,wtc and security services)
02 January 2014
In case the service provider is availing exemption owing to turnover being less than Rs. 10 lakhs then he shall not be obliged to pay any tax. However, Service Recipient shall have to pay service tax to the extent of his service tax liability under the partial Reverse Charge Mechanism.
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service recipient cannot avail SSI exemption while discharging servcie tax liability under reverse charge in terms of Notification No. 33/2012- ST dated 20-06-2012
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The benefit of SSI Exemption/Threshold Exemption of Rs. 10 Lacs given under Notification No. 33/2012 is available only to the service provider and NOT to the Service Receiver.
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service recipient cannot avail SSI exemption while discharging servcie tax liability under reverse charge in terms of Notification No. 33/2012- ST dated 20-06-2012
.
.
The benefit of SSI Exemption/Threshold Exemption of Rs. 10 Lacs given under Notification No. 33/2012 is available only to the service provider and NOT to the Service Receiver.
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02 January 2014
Thank you sir.thanks a lot.
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