I have some questions regarding service tax under reverse charge mechanism please help me to sort out this problem,
1. Suppose a goods transport company(GTA) having turn over more than 10,00,000 charging service tax in its bill, whether the service tax is required to be deposited in government treasury by service receiver or by service provider? (i.e. GTA)
2. If in above case the company's turnover is less than 10,00,000 then what should service receiver should service receiver should do? whether reverse calculate the service tax element and deposit the same in government treasury?
3. If a sole proprietorship firm supplying manpower having turn over less than 10,00,000 whether service provider required to charger service tax in the service bill? whether exemption limit of Rs. 10,00,000 is applicable in reverse charge or not? What should the receiver of service should do under partial reverse charge(unknown to the turnover of service provider)?
Please help me on these reverse charge mechanism issue?
17 November 2013
GTA over 10 Lakhs-> Be registered, pay ST when provding service to OTHER than specified persons { Companies, Corporation, manufacturer, dealer under excise..} If providing service to them, then the company ... would be liable. Whether paid by provider or reciver liability is on 25%. Basic exemption not available for reverse charge payment by the receiver.
Manpower supplier need not pay but receiver needs to pay on 75%.
CAclubindia
