Reverse charge mechanism on labour supply
This query is : Resolved
17 October 2013
I am auditing a maufacturing company. They have paid bonus to contractor who supplies manpower on the eve of festival. I want to know, whether reverse charge mechanism provisions apply and can I they claim Service tax credit on bonus?
CA Abhishek Malpani
(Expert)
17 October 2013
In case company has paid the bonus to manpower supplier for the labor provided to them, then reverse charge will be applicable on the bonus paid.
17 October 2013
Hi,
Yes Reverse charge is applicable if Service provider is not a corporate.
If you pay ST on that you can claim cenvat for that amount.
Thanks//VaibhavJ
Yes Reverse charge is applicable if Service provider is not a corporate.
If you pay ST on that you can claim cenvat for that amount.
Thanks//VaibhavJ
18 October 2013
Agreed with Vaibhav.
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